Used Vehicle Market Conditions
Average wholesale prices declined for a third month in July. Prices appear to have stabilized in August and remain up by approximately 30% compared to pre-pandemic levels. Retail used vehicles sales remain soft, but Certified Pre-Owned sales are doing well. These trends suggest consumer concerns about vehicle affordability. Consumers are pushing back on still-high used vehicle prices and abstaining from purchasing altogether while with CPO sales consumers are pushing back on still-high new vehicle prices and purchasing used vehicles instead.
According to ADESA US Analytical Services’ monthly analysis of auction industry used prices by vehicle model class, wholesale prices in July averaged $14,473, down 4.7% compared to June, down 11.9% relative to July 2022, and up 26.7% versus pre-pandemic levels. Average prices stabilized in August and stood at $14,423 while “late-model” used vehicles stood at $24,719. (ADESA)