- We watch wholesale used car prices to predict retail prices.
- They fell in July compared to June.
Car pricing is in the headlines. News about tariffs has everyone nervous that new car prices will spike. When a jump happens, used car prices follow.
Yet, so far, actual prices are remarkably stable. New car prices have not risen abnormally high, as automakers and dealers work to keep tariffs from hitting shoppers hard. Used car prices have also climbed very little in recent weeks.
Now, we see evidence that they could actually drop.
We track the wholesale prices car dealers pay for used cars at auction to understand how retail prices are likely to change. Wholesale prices at auctions declined in June.
Related: Is Now the Time to Buy, Sell, or Trade in a Car?
Kelley Blue Book’s parent company, Cox Automotive, also owns auction giant Manheim. Its Manheim Used Vehicle Value Index tracks what dealers pay to restock their lots. The index declined by 0.5% in June — not a major change but remarkable in an unstable economic climate.
Used car auction prices finished the month 2.9% higher than a year ago. Some inflation is a normal product of time.
Wholesale price changes usually become retail price changes after six to eight weeks.
Low demand may be keeping prices in check. The Consumer Board reports that consumer confidence was down 4.6% year over year last month. The number of respondents who said they were planning to purchase a vehicle in the next six months declined to the lowest level in three months and was slightly lower year over year.
That’s bad news for dealers, but good news for you — you’ll have fewer competitors on the used car lot.
