The wholesale prices car dealers pay for used cars fell by 1.9% in the first two weeks of April. That means prices chalked on windshields at used car lots will also likely fall. Wholesale price changes become retail price changes after about six to eight weeks.
The news comes even though car dealers have fewer used cars on their lots right now.
Car dealers traditionally aim to keep about a 60-day supply of cars in stock. According to data from Kelley Blue Book parent company Cox Automotive, they ended March with about 44 days’ on average.
Spring usually brings a surge in used car shopping as tax returns give many Americans the resources to buy. With high interest rates keeping some shoppers away from new lots, traffic into used car lots has been higher than normal this year.
A dip in supply might mean an increase in prices in most years. But declining wholesale prices suggest that’s not likely soon. The price of the average used car has been in a slow, steady decline throughout 2024.
