After hitting new highs during the Covid-19 epidemic, prices for used cars have started to go down, but they haven’t returned to where they were before the epidemic. Even though used car prices aren’t likely to drop to that level for a while, bulk car prices are at their lowest point of the year. According to the Manheim Used Vehicle Value Index, the prices used car sellers paid at wholesale auctions in May were 2.7% lower than in April. This is the second month in a row that prices have gone down. Also, they were down 7.6% from May of last year, which shows a slow but steady drop from one year to the next. Even though there are some small jumps and the depth isn’t straight, the general trend is down. Wholesale prices and retail prices for used cars often go down at the same time. In the next six to eight weeks, prices for used vehicles at sale should go down again. But expect costs to stay where they were before the plague soon. “Overall, the year-over-year decline in May was faster than in April and March. However, the rate of decline may slow in the coming months because auction prices were lower from May to November last year.” Chris Frey, general manager of economic and industry analysis at Cox Automotive, says that two consecutive readings in either metric don’t show a trend because the number of used cars for sale at retail is still lower than last year. This keeps buyers at auctions and keeps prices stable. We’re all sick of paying too much for new or used cars. Customers have been getting the short end of the stick when buying a car since the outbreak. Used vehicle prices have increased, and purchasing a new vehicle without paying store markups seems like a lot of work. We might finally see a way out of this situation.
