Used Car Prices Continue to Ease — But Are Still 50% Higher Since COVID-19

After skyrocketing since the outbreak of COVID-19, used car prices have finally started to ease, raising early hopes that a bubble is starting to wane.

Investors keep tabs on a number of well-known used vehicle stocks, including CarMax Inc. KMX, Lithia Motors Inc LAD, AutoNation Inc. AN, and Carvana Co. CVNA.  

What You Need To Know About The Latest Second-Hand Car Price Trends: The Manheim Used Vehicle Value Index, which collects data from 5 million used car sales each year, fell 2.7% from March to mid-April, representing a 4% year-on-year decline. 

• It's the first time since the start of COVID-19 that used car prices fell in the first two weeks of April.
• The used car index value was 231.7 in mid-April 2023, still about 50% higher than the months prior to the onset of the COVID-19 pandemic in 2020. 
• In the first half of April, seasonally adjusted prices were down year-on-year in seven of the eight used car segments. 
• The luxury second-hand car market is once again suffering the most, with prices down 8.6% year on year. 
• Vans were the second-worst market, dropping 5.9% year on year. 
• In the first 15 days of April, the average price for rental risk units sold at auction was up 5.1% year on year. Rental risk prices increased 2.4% year on year in March.

Chart: Manheim Used Vehicle Value Index

Source: Manheim

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