The average used car listed for $25,670 in May – an insignificant 0.4% increase from April’s average listing price. Prices are likely to stay flat or fall slightly in the coming weeks.
Prices sit 6% lower than a year ago, according to Kelley Blue Book parent company Cox Automotive.
Used car shoppers have seen better price trends than new car shoppers in recent months. The average new car in May sold for 1% lower than a year ago.
The available supply of used cars has improved by 3% since this time last year. Dealers have about a 45-day supply of used cars on average – lower than their traditional target of 60, but more than they’ve held many months since the COVID-19 pandemic reduced car production, slowing the supply of used cars for years to come.
But, in a newly stable market, dealers paid less for used cars at auction in May. That’s good news for shoppers who can wait a little longer – wholesale price drops usually become retail price drops after six to eight weeks.
The older, higher-mileage used cars that dealers price under $15,000 are the hardest to find lately. Dealers ended May with just a 34-day supply of those.
