The price of the average used car in America is on the way down. New data suggest it may fall further.
In February, the average used car sold for 4% less than last year. Dealers are paying even less for used cars at auction.
The Manheim Used Vehicle Value Index tracks the wholesale prices dealers pay at auction for the used cars they later sell. The index ended February down 13.1% from a year earlier, even after adjustments for seasonal fluctuations.
Related: How To Buy A Used Car In 10 Steps
Kelley Blue Book parent company Cox Automotive publishes the index.
Wholesale price trends tend to become retail price trends after about six to eight weeks.
That drop could come just in time for many shoppers. “Tax refunds have picked up over the last two weeks, with the average refund now 4% higher than 2023 levels at this time,” says Jeremy Robb, senior director of Economic and Industry Insights for Cox Automotive. “This has put money into consumers’ pockets, and retail purchase activity is increasing.”
The Conference Board Consumer Confidence Index declined by 3.8% in February, as views of the present situation gave up some of January’s gains, and views of the future also declined. Consumer confidence was up 3.2% year-over-year. Plans to purchase a vehicle in the next six months increased and increased substantially year-over-year.
