There’s good news across the board for car shoppers, except in the areas dealers can do little about. New car prices fell last month. Used car prices held steady despite ongoing supply problems. Now, there are hints that used car prices are about to fall.
Car dealers obtain used cars through two pipelines – trade-ins and cars bought at used car auctions. They have control over what they offer you for your trade-in. At auctions, they’re at the mercy of the market. And the market is being kind.
The prices used car dealers pay at auction fell 0.3% in the first two weeks of June. They sit 8.5% lower than last June.
The numbers come from Kelley Blue Book’s parent company, Cox Automotive, which also owns Manheim, the largest auto auction operator.
“May ended with stronger than normal price declines in the last few weeks, and that’s continued into early June,” said Jeremy Robb, senior director of Economic and Insights at Cox Automotive.
Wholesale price drops tend to become retail price drops after six to eight weeks. So the news may mean lower prices for shoppers into late summer.
Interest rates, however, are likely to remain a barrier for many.
Pickup trucks saw less of a decrease than other vehicle types, with prices just 7.5% lower than last June. Used compact cars are the best deals, with prices down 11.2% year-over-year.
