Used car prices are still elevated, but there are signs that the market is finally cooling. CarGurus’ used car price index shows that average used pricing for most brands has fallen over the last year, with some seeing double-digit percentage drops.
Tesla, which has reduced its new vehicle pricing several times in recent months, led the charge with an almost 27 percent drop in used pricing year-over-year. The top 10 list:
Some of the numbers are surprising, but many can easily be explained. For a while, pricing for used Teslas climbed quickly as buyers turned to flip their cars on the used market for inflated prices. However, as supply caught up with demand and Tesla began slashing prices for new models, the crazy used values collapsed.
Some used vehicle segments saw greater declines in average pricing than others. Average used minivan prices fell by 8.37 percent and sedans dropped by 7.26%, while coupes were up 2.57% and convertibles were up a whopping 12.54%. Interestingly, Pontiac topped the list of brands with the largest price increases, and Mercury also made the list. Both brands have been defunct for a while, with over a decade since the last Pontiac rolled off the assembly line.
These are promising signs for used car buyers, as it’s been exceedingly difficult to get a good deal on several popular makes and models in recent times. The Manheim Used Vehicle Value Index showed that prices have fallen in the first two weeks of April for the first time since the beginning of the pandemic. Still, many analysts believe it could be years before the market truly stabilizes, as the lack of steady new vehicle inventory has driven a shortage of late-model used vehicles.