In August, the average price of a used car was $25,172, representing a 0.9% decrease from July and a 6% drop compared to the end of August last year.
This decline does not necessarily indicate that dealerships reduced car prices significantly; rather, the average age of the vehicles sold last month was slightly older, contributing to the lower average price.
The statistics are sourced from Cox Automotive, which is the parent company of Kelley Blue Book.
Price trends are expected to vary as early fall approaches. To effectively predict retail prices for used cars, it’s essential to monitor wholesale prices that dealerships pay at auctions. After experiencing a gradual increase throughout much of the summer, these wholesale prices began to decline earlier this month.
It generally takes six to eight weeks for changes in wholesale prices to be reflected in the prices marked on used cars for sale. Consequently, we might see a gradual increase in prices, followed by a potential decline as cooler weather sets in.
Related: Discounts on New Cars 50% Higher Than a Year Ago
This week, the Federal Reserve lowered interest rates for the first time in over four years. However, experts note that it will take time for this reduction to impact the auto loan market—consumers may want to hold off for further decreases in borrowing costs.
For those who need to shop for a vehicle, finding older and more affordable new cars is becoming increasingly challenging.
There remains a limited selection of used cars priced below $15,000, with only a 31-day supply available—the lowest since March 2021.
The five best-selling used cars in August had an average price of $23,682.
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