Used vehicle finance rates have hit a high point for the year to start November.
The average weighted used rate hit 14.31 percent, according to the latest Cox Automotive Auto Market Report. Rates are up 186 basis points year over year.
Average new finance rates are also up, reaching 9.87 percent. They are just off their peak for the year of 9.95 percent in mid-October.
While rates are rising, the used market is seeing vehicle prices decline. Retail prices are down 1.8 percent in the past four weeks. Cox Automotive data shows wholesale prices are down 4.4 percent in the past month.
“Depreciation is higher than normal for this time of year,” said Cox Automotive Chief Economist Jonathan Smoke.
He said that is an encouraging sign heading into the final two months of the year.
“We could see consumers that have been sitting on the sidelines finding price points that will encourage them to get back into the market,” Smoke said. “To me that spells stronger momentum as we close out the year.”
Used retail sales are up 5 percent year over year, despite the high rates and low inventory. Used inventory is 6 percent down from 2022. The days of supply remain 2 percent behind 2019.