Used Price Drops Slow

Used-vehicle values continued a series of decreases in June, though at a slower pace.

Cox Automotive noted a seasonally adjusted 0.6% decline for the second month in a row for an index reading of 196.1 and putting values down 9% year-year-over for the first half of 2024.

The decline and the series it’s included in was steeper than normal for the time of year but showed the trend was starting to slacken, ending June at a seasonal normal despite the CDK dealer software outage, Cox said.

“Sales conversion is currently running several points above the previous three years, including 2021, indicating that buyer demand is relatively strong despite all the uncertainty in the market,” said Senior Director of Economic and Industry Insights Jeremy Robb.

The overall June dip is part of a wider decline that Cox first observed in the used-vehicle index in 2021.

“We think the decline may be nearing its floor, which should help stabilize the market through the summer months and rebound in the back half of the year,” said Chief Economist Jonathan Smoke. “Between increasing demand, slowing price declines, and slightly better interest rates, all of our indicators point to an optimistic outlook for the rest of the year. We may even see a few months of growth before the end of 2024.”

Of all the used segments, pickup trucks outdid the rest of the industry, Cox said,

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