Tuesday, July 11, 2023

Used Car Wholesale Prices Are Down

Good news from Cox Automotive.

Wholesale used car prices dropped by 4.2 percent from May to June, marking the largest monthly decrease since the start of the COVID-19 pandemic, according to the Manheim Used Vehicle Value Index (MUVVI).

The index, which is a measurement of wholesale prices of used vehicles, also saw a drop of 10.3 percent from a year ago....

One reason:

New cars are flowing onto dealer lots.  Not as fast as dealers would like, but a whole lot faster than over the past couple of years.

So people who really wanted a new car but couldn't get one bought used instead--until new cars showed up again.

Another reason?  Banks aren't comfortable financing high-priced used cars for people with mediocre credit.  The fact is that in reality-land, many used cars were simply not worth the price that dealers demanded.  If you had good credit and a nice down payment, no problem; otherwise, not so much. 

No doubt Bai-Den will take credit for this and--as usual--he's full of crap.

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