Used Vehicle Market
For the 2nd month in a row, average wholesale used vehicle prices fell on a month-over-month basis in July and appear to have moderated to what are still historically high levels well into August. Retail used vehicle sales and CPO sales have also moderated from their spring peaks but remain at high levels.
According to KAR Global Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale prices in July averaged $14,250, down 2.7% compared to June, up 6.5% relative to July 2020, and up 24.4% compared to pre-COVID/July 2019. All segments except fullsize vans and compact pickups, which are small segments volume-wise, showed month-over-month declines in average prices.
After rising rapidly through the spring months, price increases have generally moderated to an overall level of nearly 40% above pre-COVID averages. Pickup trucks have seen the greatest price moderation.
Based on NADA data, retail used vehicle sales by franchised and independent dealers in July were up 7.5% month-over-month but down 2.7% year-over-year. Year-to-date through July, sales are up 15.2% versus 2020 and 2.1% compared to 2019/pre-pandemic levels. Similarly, CPO sales were up 4.0% from the prior month but down 2.7% versus last year, according to figures from Autodata. On a year-to-date basis through July, CPO sales remain up 14.4% compared to last year and 4.3% versus 2019.