The average used car in America was listed for $25,151 in February – about $175 lower than in January, according to data from Kelley Blue Book parent Cox Automotive. Used car prices are now in a slow, steady decline and likely to keep falling in the near future.
Used car prices are about 3% lower than they were one year ago.
We expect the trend to continue, as the wholesale prices dealers pay at auction for the used cars they later sell are also in a long, slow decline.
Related: New Car Prices Falling Slowly, Steadily
The trend continues even though the nationwide used car supply is a little thin. Car dealers usually aim to keep about 60 selling days’ worth of cars in stock. They fell well under that figure during the COVID-19 pandemic, and the nation’s supply is recovering slowly.
Manufacturers built about 8 million fewer cars during the pandemic than they otherwise would have. Those unbuilt cars mean a lull in the used car supply that will last many years.
Dealers nationwide ended February with an average of just 44 days’ worth of cars in stock – but that figure is up 9% from a year ago.
But spring is used car sales season, as many Americans use their tax refund to solve their transportation problems. Brisk used car sales and decreasing inventory are normal this time of year.
Americans are, however, buying more expensive, lightly used cars than normal. Buyers drove home more than 300,000 used cars priced over $35,000 last month. Vehicles priced between $15,000 and $20,000 had the next highest level of sales, at over 280,000.
Used vehicles priced under $15,000 remain the hardest to find.
