[ad_1]
A used car dealership is seen in Annapolis, Maryland on May 27, 2021 as many auto dealerships across the country are low on new cars as a shortage of computer chips has nearly halted production at many automakers.
Jim Watson | AFP | Getty Images
DETROIT — Wholesale used car prices fell last month for the first time this year, as automakers ramped up production of new cars and trucks.
Cox Automotive reported on Friday a 3% decline from March to April in Mannheim used vehicle value indexalthough levels are still high compared to historical figures.
The index, which tracks cars sold at wholesale auctions in the United States, was still up 5.2% from December but down 4.4% from April 2022.
“We’ve seen eight consecutive months of year-over-year declines, averaging 8.3%, and it’s probably not over yet,” Chris Fry, senior director of economic and industry insights at Cox, said in a statement.
Used car prices have skyrocketed since the start of the coronavirus pandemic, as the global health crisis combined with supply chain issues has caused new car production to come to a sporadic halt. This led to a reduced supply of new cars and record high prices amid resilient demand. Costs and scarcity of inventory led consumers to buy used cars, driving up those prices as well.
Further declines could help lower used car prices for consumers, since retail prices usually track changes in wholesale prices.
Cox reports that the average listed price for a used car was $26,086 in febthe latest data available, down slightly from January.
“Prices are coming down, but tight supplies may be supporting prices,” said Charlie Chesbro, chief economist at Cox. “Used prices may drop further, but a significant drop seems unlikely given the supply situation.”
Used car prices have increasingly become a point of interest for investors and the Biden administration as a measure of inflation relief. The administration early last year blamed much of the country’s soaring inflation on the used car market.
[ad_2]
