Used vehicle prices are falling but not enough to offset grossly inflated levels – By Michael Wayland (CNBC) / Jan 9, 2023
- Used vehicle prices are expected to come down further this year amid rising interest rates and improved availability of new cars and trucks, according to Cox Automotive.
- The firm expects wholesale used vehicle prices to end the year down 4.3% from December 2022.
- The decline is expected to follow a whopping 14.9% fall last year from inflated prices during the coronavirus pandemic.
DETROIT — Used vehicle prices are expected to come down further this year amid rising interest rates and improved availability of new cars and trucks, according to Cox Automotive.
The automotive data firm expects wholesale prices on its Manheim Used Vehicle Value Index, which tracks prices of used vehicles sold at its U.S. wholesale auctions, to end the year down 4.3% from December 2022.
“New supply remains tight, but it is improving rapidly. As supply in new improves demand for us is declining,” Cox Automotive chief economist Jonathan Smoke said Monday.
The decline is expected to follow a whopping 14.9% fall last year from inflated prices during the coronavirus pandemic, as the availability of new vehicles reached record lows due to supply chain and parts problems that interrupted vehicle production.
