All Things Used Cars

Economic Source

  • Inflation is still well above the Federal Reserve’s 2% target at 3.4% but it did show signs of potentially slowing fueled by falling energy prices.
  • Loan delinquencies rose in May, but declining default rates offer positive news
  • The market reacted positively to these numbers seen in the stock market and the Fed’s latest meeting.

Cox Automotive’s Manheim Wholesales Market Source

  • The 3-year-old wholesales index dropped 0.4% as dropped for all model years.
  • Lane efficiency increased for both 3 and 6-year-old models
  • Used cars below $15,000 continue to show constrained availability with only 34 days’ supply

Summary: Source

  • The time is ripe to leverage high inventory levels and low APR financing new car deals and fill your stores with used car trades.
  • Affordability remains challenging for consumers, and supply is more limited at lower prices. Used car prices are down about 5% in 2024 to $25,540 with the top five sellers of the month sold at an average price of $23,999, about 7% below the average.
  • Certainly, there are signs of softening in the used market, but prices are steady, and margins are present for dealers with an inventory strategy that is agile to market price-band and segment demand requiring progressive discipline!