How drastically has the used car market changed as the end of 2022 approaches? Wholesale prices for used cars have fallen 14.2% year over year.
According to the Manheim Used Vehicle Value Index, prices fell 1.6% in the last month. The index, a product of Kelley Blue Book parent company Cox Automotive, tracks the prices dealers pay for the used cars they later sell to consumers.
It rose like a rocket from late 2020 until February of this year and has since been falling steadily. When wholesale prices fall, retail prices follow. The average used car price fell below $28,000 in October — the most recent month for which data are available.
Used car prices have fallen so fast that one major used car retailer is reportedly considering bankruptcy due to inventory it bought at high prices and must now sell for lower ones.
Prices fell during the month for six of the eight major market segments the index tracks. Compact cars had the smallest decline at 10.5%, followed by vans and sports cars at 11.6%, and pickups at 11.9%.
