Car dealers are paying almost 15% less for used cars at auction than they did a year ago.
Used car prices are in a slow decline early in 2024. The average used car buyer is paying about 3% less than they did a year ago.
That trend is likely to continue, as dealers are paying less to acquire used cars in the first place.
That news comes from Kelley Blue Book’s parent company, Cox Automotive, which also owns car auction giant Manheim — where car dealers go to buy used cars they later sell.
The Manheim Used Vehicle Value Index tracks the prices dealers pay. Once adjusted for normal seasonal fluctuation, it fell about 0.6% in early March. Changes in wholesale prices become changes in retail prices after about six to eight weeks.
Dealers have a thinner supply of used cars post-pandemic. Manufacturers built about 8 million fewer cars during 2021 and 2022 than they otherwise would have. Those unbuilt cars mean a lull in the used car supply that will last many years.
Prices are about 15% lower than a year ago, but the type of car you’re interested in could influence the price you pay. Midsize cars are down about 16.9%, compact cars 16.6%, and pickups 15.6% year-over-year. Luxury vehicles are down just 13.5% — part of a new trend as Americans are buying more luxurious and expensive used cars. Used cars priced over $35,000 outsold those under $20,000 last month.
