America’s car dealers paid more in March at used car auctions than they did in February. When dealers pay more, they pass those cost increases on to buyers.
There are normal seasonal fluctuations in used car prices. When Kelley Blue Book parent company Cox Automotive’s economists remove those, prices are still up 1.5% over February.
The average new car price has been in steady decline for several months. Used car prices have been dropping, too, despite increasing wholesale prices.
The average sale price for a used pickup increased by 0.6% in March. Every other segment of the market saw prices drop.
That comes, in part, because sales are slow. Most years, March brings a used car sales surge as Americans begin receiving tax refunds. It has been lower than normal this year — used retail sales in March are estimated to be down 6% year over year.
That makes predicting future price trends challenging. Cox Automotive Chief Economist Jonathan Smoke says the rest of 2023 “will be a bumpy ride” for used car shoppers.
