There is finally some reprieve in the used car market with prices declining by 4 percent in August and continuing to drop in September.
The Manheim Used Vehicle Value Index which tracks a collection of used vehicle prices has revealed that prices are at their lowest level since September 2021 and roughly 11 percent lower than they were in January 2022. In addition to prices falling by 4 percent in August, they also dropped by 1.4 percent through the first half of September.
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Manheim’s data reveals that the Jeep Wagoneer is losing value the fastest with prices falling by 1.96 percent in August. Scion models have also been hit particularly hard with prices dropping by 1.88 percent.
Interestingly, the average used vehicle prices of models from select brands are actually on the rise. Indeed, prices for used Hyundai, Honda, and Mazda models rose by between 0.3 percent and 0.9 percent throughout August.
Prices may continue to fall, Business Insider reports. Indeed, an industry expert on Twitter asserts that prices may drop by 1 percent to 2 percent every week, meaning the end of the year might be the best time to buy a used car.
Used car dealerships will feel the effects of declining prices.
“Speak to any (very) large used car dealer and you will hear the same,” Capital Market Laboratories chief executive Ophir Gottlieb said. “An absolute vortex of deflation is coming to used car prices.”
Images Cox Automotive / Manheim