Finally, used-car prices are falling.
At the wholesale level — where auto dealers go to buy their stock — the average used-car price was down 1.8% compared to a year ago, according to Adesa Analytical Services.
Used-car prices are finally letting go after months of being sky high because more people have bought new cars. Their late-model trade-ins become used cars and since there are more of them, prices are starting to loosen up, plus used-car prices were getting so high that they were close to new car prices.
“Consumers have realized a new car is only slightly more expensive than buying a 1- to 2-year-old used car and this has helped to not only bolster new-car sales, but lessen demand at auction and drive down used-car values,” says Alec Gutierrez, a pricing analyst for Kelley Blue Book.