23 Jun, 2024

Used car prices tumble again in December – but will begin to stabilize in 2024 – Car Dealer Magazine

Used car prices in 2024 are likely to begin to stabilize after the dramatic drops seen in the last three months.

Revealing a 2.1% fall in trade used car prices for December, Cap HPI director of valuations Derren Martin gave Car Dealer his predictions for the year ahead.

The December fall means trade used car prices have now dropped 10.5% in the last quarter of 2023.

Advert

Speaking to Car Dealer in an exclusive video interview (above), Martin said the December figures were among the worst on record, but were still a significant improvement on the previous two months.

Martin said: ‘We had a 2.2% drop in 2014 and December tends to be a month where values ​​do drop, but not by this much.

‘So it’s still a reasonable drop, but I’m looking at it more on the positive that it’s been less than it has been over the last two months.

Advert

‘We are seeing this as a stabilization and we do think there’s going to be, now, a gradual improvement – ​​values ​​now look more reasonable.

‘They’re still above where they were prior to those 2021 increases, on average, by about 13%.’

December’s trade values ​​have been boosted by the

1 min read

Good News for Car Shoppers: Vehicle Prices Are Dropping

The AutoTrader Price Index is showing a drop in car prices, signifying the first time new car prices have declined month-over-month since February 2021, while used car prices continue to decline as well.

In December 2023, the average price of a new vehicle stood at $67,259. That’s up a substantial 14.2 per cent from the same month a year before, but the figure has been slowly and steadily falling. Prices were down 0.4 per cent in October, 0.1 in November, and 0.3 per cent in December after reaching record highs in September.

Find a Great Deal on Your Next Car

The slow price decline is a result of a new-car market still trying to catch up with pent-up demand from 2020 to 2022, said Baris Akyurek, AutoTrader VP of Insights & Intelligence. AutoTrader estimates that 1.3 million fewer new vehicles were sold during that period. But, Akyurek said, new car inventory levels are now trending upward. This is resulting in softened pricing for new and used models.

“There are a lot of great deals to be had in the market,” he said in his report.

Used vehicle pricing reached an average of $36,863. That’s up 1.7 per cent from December

1 min read