Current Used Vehicle Market Conditions
Average wholesale used vehicle prices reached their spring/tax season peaks in April and have plateaued near those levels in May. However, average prices are down by more than $1,000 from last year’s peaks. Other than certified pre-owned (CPO) sales, which have benefitted in part from expansion of those programs to include older units, spring used vehicle retail sales have been underwhelming.
According to ADESA US Analytical Services’ monthly analysis of auction industry used vehicle prices by vehicle model class, wholesale prices in April averaged $16,476, up 0.6% compared to March, down 6.3% relative to April 2022, and up 43.2% versus pre-pandemic/April 2019. Car segments showed month-over-month price declines, while truck segments showed modest gains on average.
Retail used vehicle sales overall are down 3.6% year-to-date while CPO sales are up 6.3%, reflecting strong demand for late-model used units. Nevertheless, sales for both groups are down from stronger sales in 2021 and pre-pandemic.