After three years with used car prices surging to levels where it often made more sense to buy new instead of used, the price pendulum for pre-owned cars is swinging the other way.
It’s not a huge pull back so far, but dealers are increasingly looking for used car prices to moderate.
The latest data comes from ADESA Wholesale Vehicle Auctions. ADESA is one of the larger firms auto dealers use to buy and sell used cars and trucks. In May , the numbers continued falling from earlier this year.
May Change vs. April
• Avg. used vehicle price: $10,271 (down) $306
• Avg. Used car price: $9,546 (down) $409
• Avg. used truck price: $11,038 (down) $207
Among the sub sectors, the only increases were seen in full-size van and full-size SUV prices. Two groups that clearly benefit from limited supply and greater demand as gas prices ease.
“Spring is always the high water mark of the year for used vehicle prices, but for the rest of this year and into next year we have probably seen the highest prices” says Tom Kontos with ADESA.