Used vehicle prices are down more than 10 percent in most categories since May.
The March Used Car Index by CARFAX shows prices have dropped steadily in a majority of the market after cresting in May 2023.
In the past nine months, luxury SUVs are down 11.9 percent and pickup trucks 11.2 percent. Hybrids and EVs have declined 10.7 percent, vans and minivans 10.1 percent and SUVs 10 percent.
“May was the high point for used-car prices in 2023. Fed by reduced inventory, limited availability of new cars and climbing interest rates, used cars were harder to afford. Now, 9 months later, used-car prices are in retreat, and as of February, they have fallen at least 10% in all but two categories,” the CARFAX report noted.
Patrick Olsen, CARFAX editor-in-chief, added the increase in new car inventory and incentives have led to the fall in used vehicle prices.
“As new prices fall, that puts downward pressure on used car prices, as consumers have to decide between a slightly more expensive new car with a great financing deal, or a used car with higher interest rates.
Cars are down 8.7 percent in the last nine months and are at an average price of $18,146.
SUVs and pick-ups have fallen $400 in the past month. SUVs are at an average price of $23,301. Pick-up trucks are currently at $33,635.
