The average used car sold for $27,143 in December. That’s $13 less than in November and $1,050 less than a year ago.
The nation’s dealerships ended the month with a 54-day supply of used cars to sell – two days more than a month before.
Both of those figures are a balm for car shoppers after one of the most chaotic years in recent memory. The available supply of used cars has stabilized, and prices are responding. That may signal the start of a year in which prices normalize and used car shoppers see a predictable market.
Related: Average New Car Price Tops $49,500
“As the supply of new vehicles improves – and it is improving rapidly – demand for used vehicles is declining,” said Cox Automotive Chief Economist Jonathan Smoke.
Cox Automotive is the parent company of Kelley Blue Book.
Wholesale Prices Dropping Faster
Wholesale prices have been dropping. So far, retail prices have not declined as quickly. But they will, says Chris Frey, Cox Automotive senior manager of economic and industry insights.
“It’s a good sign economically that prices are decreasing, making the vehicles more affordable despite interest rate increases,” he said. Record used-car prices had played a major role in inflation a year ago.
Least Expensive Cars Still Hardest to Find
One sour note for shoppers – the supply of the least expensive used cars remains tight. Dealers ended December with about a 36-day supply of the older, higher-mileage vehicles they sell for less than $10,000.
Day’s supply for vehicles priced between $10,000 and $15,000 was 45; between $15,000 and $20,000 was 51; and $20,000 to $25,000 was 57. All other price categories had about a 60-day supply.
Lexus, Subaru, Toyota, and Mazda dealers had the lowest amount of used vehicles at 50 or fewer days’ supply. Also at the low end were Acura, Honda, Hyundai, Mitsubishi, and Nissan, in the low 50s.
