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Used-Car Prices Fall by the Most Since the Start of the Pandemic
- New-car deals and rising rates sap used-vehicle demand
- Cox Automotive chief economist doesn’t see near-term recession
A used car lot.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Used-car prices in the US fell 4.2% in June, their biggest monthly drop since the early days of the pandemic, as a key measure of inflation eases.
Rising interest rates and bigger discounts on new cars are sapping demand for used vehicles, which is lowering the prices they fetch at auctions dealers use to buy and sell previously owned vehicles. Pricing also is taking a hit because dealers have almost fully replenished inventory on used-car lots that were depleted by shutdowns and supply shortages during the pandemic.