Used vehicle prices at auction declined again in the first half of April as the average pace of sales slowed following a burst of demand in March.
The total month-over-month decline over the first two weeks of April equated to a 1.9% price drop in wholesale used vehicles, although Cox Automotive reports the year-over-year decline was closer to 14%. Car values in the new and preowned markets have trended steadily downward for several months, albeit at a gradual pace, due to conscious efforts among dealers and automakers to keep inventory levels in lockstep with current demand rates.
However, while sales surged forward in both new and used vehicle markets throughout late winter and early spring, boosted by a particularly high-return tax season, early data for April suggests that demand may be starting to cool. The daily sales conversion rate for the first half of this month was 61.1%, a marginal decline from March. This may be partly due to car buyers having already received their tax refunds but could also be caused by an ongoing shortage of affordable vehicle options.
All segments in the used vehicle market saw prices fall from their prior monthly and yearly values. On an annual basis, luxury vehicles retained the most worth, losing only 12.7% of their average price, while EVs fared the worst, shedding 18.3%. Compared to March, pickups performed the best in terms of prices, which stayed nearly flat during the first two weeks of April, while compacts lost the most value.
