Automoblog, the site specialized in buying and selling cars, published a report stating that although the prices of used cars fell by 12 % in October from the January peak, does not mean that this is the best time for the final consumer to buy a vehicle.
The site explains that the drop is actually at the wholesale level and that the Fall in prices does not translate directly into lower sales prices, as in fact, used car prices are still 7.2% higher than last year.
In addition, increases Recent interest rate hikes from the Federal Reserve may offset falling used car prices and lead to higher debt payments.
After more than a year of steep and steady increases, used car prices began to fall in late summer of 2022. Falling prices have already had far-reaching effects on the auto industry, but tight supply chain conditions and higher interest rates make it hard to predict what that decline could mean for the average car buyer.
The average year-on-year fall in used car prices from October 2022 to October 2022 was 10.6%, however, the decline in used vehicle prices varied among different car types.
Luxury vehicles experienced the largest drop among all vehicle types, with a price drop of 12.6%. The next vehicle category was SUVs and crossovers (CUVs), whose prices fell by 12.4%, while compact cars experienced the smallest decrease , with prices that fell by 6.1% during the last year.
According to Automoblog, the fall in wholesale prices of used cars has yet to translate into lower sticker prices at dealerships. Although wholesale prices began to decline towards the end of July and beginning of August, the average used car transaction price remained at its highest point since September.
And for those who If people ask if this is a good time to buy a car, the site recommends that you don’t unless you have to, because in the face of a highly competitive market, record average prices and high interest rates, it means that now is one of the best times to buy a car. most expensive to buy a used car in recent history.
In short, the decline in used car prices at the wholesale level has yet to translate into good deals on the used car lot .
According to Mark Schirmer, director of PR at Cox Automotive, the price of used cars is likely to remain high for the foreseeable future. While that means that people who shop now will pay more than they would have a year ago, it also means that those looking to weather substantial drops in retail prices could wait a long time.
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