RALEIGH, N.C., Nov. 29, 2022 /PRNewswire/ — Falling used car prices recently made headlines, but what does that mean for the average car buyer? While used car prices were down 15% in October from January’s peak, the fall is actually at the wholesale level. After examining the data and the current state of the auto industry, Automoblog concludes in a recent article that it is still not a good time to buy a used car, despite the falling prices. Here are a few key points:
- While wholesale prices are down for dealers, that doesn’t translate directly to lower asking prices. In fact, used car prices are still 7.2% higher than last year.
- The recent hikes in interest rates by the Federal Reserve can actually counteract falling used car prices and cause higher debt payments.
- Supply chain issues are still a factor, and these circumstances are unlikely to return to normal in 2023.
The article also details why used car prices are dropping and what vehicle types are seeing the biggest drops.
Automoblog is an online automotive resource that helps people make informed decisions about cars and car ownership. To learn more about the publication, click here.