Used Vehicle Market
Used vehicle prices appear to have softened after hitting record highs in April. As demand for used vehicle remain relatively high, coupled with a tight supply, gross profit potential still remains strong. According to Tom Kontos, KAR Global, wholesale prices in May averaged $15,001, up 3.9% compared to April and 26.5% to the same time last year. “Trends at the segment level closely follow overall trends, indicating a consistency in demand across all vehicle categories, including the car segments that in years past were underperforming trucks.”
Average vehicle prices have been above pre-COVID levels throughout 2021, regardless of the vehicle segment. Prices in May were up over 50% compared to the same time last year, and 40% compared to 2019 levels for the Car/SUV segments.