Dealers continue to pass on higher prices to consumers as demand for used cars remains strong and credit become more available. But that pricing power is starting to weaken.
Asking prices for the majority of used and CPO vehicles on AutoTrader.com are higher than they were one year ago, the company reports.
In September, 10 out of the top 20 most-viewed used cars and 17 out of the top 20 most-viewed CPO cars showed year-over-year increases in median asking price.
"As the economic challenges that influenced major price changes earlier in the year subside, consumers will have to keep
an eye on the gaps between new and used vehicle prices so they can make the best decision that is right for them," said Rick Wainschel, vice president of automotive insights at AutoTrader.com.
There are signs that retail prices are starting to retreat, just as they have been on the wholesale side.
CarGurus released its CarGurus Used Car Price Index for October, which showed the average price of a used car at 19,278, down by 0.88 percent from September and down 1.7 percent from August.
Despite the recent downtrend, the average price of a used car remains up 2.86 percent over last year at this time. Such year-over-year price increases are most significant for hatchbacks (up 13.62 percent over last October) and coupes (up 14.89 percent over last October) and are negative for SUVs (down 0.26 percent) and pickups (down 1.49 percent).
CarGurus CEO Langley Steinert said while prices on most used cars are still high, they are "less erratic" than in the spring and summer. He expects prices to fall through the rest of the year.
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