2 more views of used-car price movements in early 2024
Used-vehicle prices are showing a “typical seasonal rise” on a month-over-month basis in the wholesale market but are down double-digits from early 2023.
Meantime, used-vehicle prices on the retail side of the market “are in retreat” from peaks reached in May.
That’s according to respective analyses released by ADESA and CARFAX in the past week.
Starting with wholesale, the January/February edition of the Kontos Kommentary report by ADESA chief economist Tom Kontos indicated that the average price of wholesale vehicles in January was $13,755, which was up 3.5% from December but down 9.5% year-over-year. Values are still up 26.5% from pre-pandemic levels.
Car prices were up 4.4% month-over-month but down 11.3% from January 2023. Truck segment prices climbed 2.7% from December but fell 10.3% year-over-year.
And as of the week ending Feb. 11, wholesale vehicle values have climbed to an average price of $14,254, according to the report.
“Average wholesale used vehicle prices rose in January and have continued to rise thus far in February,” Kontos said in the report’s summary. “Despite this typical seasonal rise, prices remain down on a year-over-year basis, which is more reflective of weaker demand that was also evidenced by slow retail used vehicle sales.”
In the retail market, prices for used vehicles in most segments are down at least 10% from the apex in spring 2023, according to the latest CARFAX Used Car Index.
Luxury SUV prices in February fell 11.9% from May, while pickup trucks are down 11.2% and hybrids/EVs are down 10.7%, CARFAX said in this report.
Prices for vans/minivans have dropped 10.1%, while SUV prices are 10% softer. Car prices are off 8.7% from the peak, with luxury cars down 5.9%.
“May was the high point for used-car prices in 2023. Fed by reduced inventory, limited availability of new cars and climbing interest rates, used cars were harder to afford,” CARFAX’s Patrick Olsen writes in the report. “Now, 9 months later, used-car prices are in retreat, and as of February, they have fallen at least 10% in all but two categories.”
Compared to a year ago, SUV prices are down 4%, while car prices have fallen 0.8%, according to the CARFAX index.
Pickup prices are off 0.7%, luxury SUV prices are down 6% and luxury cars are 5.8% softer.
Prices for hybrids/EVs are down 8.1%, with vans off 4.8%.