Used Car Prices Finally Fall | Used Car Info

Soaring used-car prices finally start fall

After a big rise, wholesale prices of used cars are finally starting to fall a little. It should moderate, or at least slow, rocketing retail used-car prices -- what you'll pay -- that are up more than 30% this year.

At the wholesale level, used car prices fell another $300 in June and are now more than $600 below their April peak for the year so far, says Tom Kontos of Adesa's consulting arm. Adesa itself is one of the nation's largest wholesale sellers of used cars.

Even though wholesale used-car prices have tapered off, don't expect the party to last. "Tight used vehicle supplies plus strong retail demand should keep used vehicle prices from dropping dramatically," Kontos writes in a note to the industry.

And while used-car prices are starting to slack off, retail used vehicle sales in July still were higher, up 17.8% year-over-year at new-car dealers' used-car lots and up 10.7% for independent dealers.

On a month-over-month basis, used vehicle sales were up for both groups as well. "Certified" used vehicle sales in July were up 1.4% versus June, registering their strongest showing of the year for these automaker-sponsored programs, according to Autodata.

Sounds like the "mild recovery" that economists keep saying is happening is at least still taking place for the auto industry


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