Used car prices may soon take a turn for the better after months of steep increases due to low inventories of pre-owned and new vehicles.
(Uli Deck/picture alliance via Getty Images)
Average wholesale prices for used cars dropped by 1.3% in June, according to auto auction giant Manheim, marking the first decline since December.
Retail prices typically lag what the dealers pay by a month or two, so it may still be a few weeks before shoppers see significant relief.
According to Manheim, the average auction price in June was $19,997, compared to $15,765 during the same month in 2020 and $14,016 in 2019.
Pickup prices remain particularly inflated and are 49.5% higher than they were last June.
Used cars have become so valuable in recent weeks that iseecars.com was able to identify 16 2019-2020 models that are selling for more than when they were new.
The issue has even become a concern for the Federal Reserve, as it keeps an eye on inflation.
Federal Reserve Chairman Jerome Powell at a press conference on June 16 attributed the spike in used vehicle prices to “a perfect storm of very strong demand and limited supply.”
He added at the time that he was “not sure” when prices would begin to reverse.
FOX Business’ Jonathan Garber contributed to this report