When wholesale used car prices go down, retail prices typically follow. It might take between six and eight weeks but we should see another drop in retail used car prices. However, don’t expect pre-pandemic prices in the foreseeable future.
“Taking a longer view, May’s year-over-year decline accelerated from April and March; however, the rate of decline might slow over the next several months as we encounter the lower prices seen at auction from May through November last year. Two consecutive reads in either measure do not a trend make, as used retail inventory is still below last year, and that tends to keep buyers at the auction, supporting prices,” said Chris Frey, senior manager of Economic and Industry insights for Cox Automotive.
