A person rides a scooter past a used car lot on January 31, 2023 in Los Angeles, California. Prices and sales of used vehicles are falling from pandemic highs amid rising interest rates, increased production of new automobiles and concerns of a recession. (Photo by Mario Tama/Getty Images)
Used cars were one of the biggest contributors to inflation over the past two years. Now, despite steady price declines in recent months, dealerships are hiking their prices once again.
According to Cox Automotive's Manheim Used Vehicle Value Index, prices were up 2.5 percent in January from the month before, even as they remain down 12.8 percent from a year ago.
Cox noted that the increase is due to higher-than-expected demand for the season.
The trend could stem from consumers playing catch-up. In 2022, buyers backed out of the market due to elevated prices and shortage of supply, driving down prices by 15 percent.
The average listing for a used vehicle was $27,143 in December. Just last month, Cox reported the market had returned to its pre-COVID normal. Now that narrative could be in doubt.
Curious as to what your latest streaming bundle will look like? Find out what the future of media looks like from Ken Leon, Research Director, at CFRA. Watch!
Nathan Bomey, Reporter at Axios, discusses where Tesla stands, Musk's relationship with the incoming president and expectations for Tesla throughout 2025.
Senior Writer at Fast Company, Elizabeth Segran, discusses how Sephora has become the dominant beauty retailer and why brands want to sell there. Watch!
Matt Calkins, CEO of Appian, breaks down the recent bipartisan report on AI safety and shares thoughts on future privacy enhancements needed in the space.
