
Car dealers paid nearly 1% less for used cars at auction in December than they did in November. Wholesale prices tend to become retail price changes after about six to eight weeks, so the change likely means lower prices for used car shoppers in late winter.
The index finished 2024 up 0.4% from a year before, as the supply of used cars nationwide remains low. Automakers built fewer cars than planned during the height of the COVID-19 pandemic. That will constrain supply for years to come, helping keep prices high. Used car retail prices increased in December, settling at $25,565 on average. But dealers paid 0.8% less at auction, showing that a minor price drop is possible soon.