Posted on 07/10/2023 11:09:18 AM PDT by ChicagoConservative27
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.
“The 4.2 percent drop is among the largest declines in MUVVI history and the largest decline since the start of the pandemic in April 2020 when the index plunged 11.4 percent,” Chris Frey, senior manager of economic and industry insights for Cox Automotive, said in a statement.
“The year-over-year decline was also large, another 2.7% drop from May’s annualized 7.6% decline, but as mentioned last month, auction prices were lower in the fall last year, and we expect these increasing year-over-year moves to shrink in the months ahead as the market normalizes,” Frey added.
(Excerpt) Read more at thehill.com ...
They’ve got a bunch further to go. Hopefully there will be some outstanding schadenfreude.
Economic contraction?
The Average Car Is Now a Record 12.5 Years Old
https://www.roadandtrack.com/news/a43903366/average-car-age-12-years/
The average age of a passenger vehicle on U.S. roads has reached 12.5 years, according to research firm S&P Global Mobility. The firm analyzed data from the 284 million vehicles currently registered for the road in America, finding that the average age of vehicles on the road grew by more than three months versus 2022.
That plus interest rates are up. Plus, a year or two ago there was a high demand as people were returning to work, thus most people who need a car have one.
I wonder how long before the consumer sees any benefit?
My son totally my SUV during the height of Covid, my insurance company gave me over twice what I thought it was worth.
And people on fixed incomes are driving less, because of higher gas prices and maintenance costs.
That gives me an idea...
Will that translate to lower new and used car prices for us peons?
As the summer goes on and gas prices stay high or go higher, large vehicle (SUV’s) and truck prices should go down.
The main reason has to be electronic fuel control. Next, is much better quality steel.
“And people on fixed incomes are driving less, because of higher gas prices and maintenance costs.”
That’s me plus I have lost some minor side jobs.
What used to be a weekly or even daily trip to the gas station is now 1 or 2 times a month.
I bought my car new 16 years ago. Paid it off in 2 years.. It’s got 52k on it.. I fill up once ever 4 to 6 weeks..
Everything still works on it..
I drive 26 miles to help a farmer during planting and harvest, and 45 miles to see family. Other than that, it just special occasions.
I married a 21 yr old city doll almost 45 yrs ago. Brought her out to the farm, and she realized the grocery was not a quarter mile away any more. She quickly became good at making a list, after driving 32 miles round trip only to get home and realize she forgot a thing or two.
I need a new/newer car. Mine is getting a bit long in the tooth. I bought my last one used but very low miles. I’m flabbergasted at the asking price of new vehicles! Fortunately I don’t need any of the extra stuff on the upper trim levels.
Still, I’m hesitant to pull the trigger. I keep thinking, “just maybe another year out of the old one.” But I do some long distance driving and would not deal well with a major breakdown far from home.
My wife kept our 2008 Ford Taurus X until the transmission fell out last month.
That might be why used prices are dropping, at least for older models. People are keeping their old cars as long as they can. They don’t go on sale until they are practically wrecks.
More ICE vehicles coming out of Detroit?
Wait 12-18 months before you're going to purchase a new/newer car.
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