CARFAX Index shows declining used vehicle prices

Used hybrids and EVs dropped an average of $9,000 in the past year, according to the September CARFAX Used Car Index.

The index, which started in April, saw prices dropping between $600 and $9,000 in all seven categories CARFAX tracks.

“This was the first month where every category dropped,” said Patrick Olsen, CARFAX Editor-in-Chief.

The price declines are expected to be the start of a trend for several months, with new car inventory increasing and demand lagging due to high interest rates and economic uncertainty.

“Consumer demand is muted with the concerns about jobs and as more new cars become available, I expect prices to continue to drop,” Olsen said.

Hybrids and SUVS were down 22 percent in the past year to $31,826.

Luxury cars also saw a double-digit drop of 11.9 percent to $30,895, since August 2022.
Even SUVs and pickups had minor price declines. SUVs were down $250 in the last month and pickups $500. CARFAX reports pickups are down $1,000 since June.

CARFAX points out, while prices have dropped, they remain higher than before the pandemic due a lack of inventory.

“In 2020, COVID-19-related shutdowns began, and new-car sales tanked in the U.S. That means the typical number of used cars coming off lease is lower than in the years before the pandemic, which limits used-car inventory,” the CARFAX report noted. “With less inventory, there are fewer cars to go around, and prices can rise.”

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