So are they falling, or not? We are hearing a lot of conflicting information about used car prices this year.
The market has started to improve for buyers: The government's January Consumer Price Index showed used car prices down 11 percent from one year ago.
It was last spring when we met Laurie Boyers trying to buy her 16-year-old daughter an affordable first car. Boyers was stunned at how expensive everything was.
She found a 2018 Honda Accord for almost $25,000, looking through online ads.
Prices down this winter....but...
The good news is that prices are down slightly since we spoke with her.
But that break may be short-lived, according toa new report from the wholesale marketplace Manheim, which reports an uptick in auction prices since February 1.
Car dealer Gary Heflin ofCourtesy Automotive says used cars he buys at auction have been better priced than a few months ago, but worries that won't last most longer due to spring buyer demand, and because new car prices keep going up.
"The transaction price of new cars continues to rise," he said, "so that pushes more people back into that preowned market."
Worse, Heflin and other dealers worry that any drop in used car prices may not last much longer because they are not seeing many lease trade-ins this year.
Think about it: 3 years ago instead of leasing a car, many people were locking down at home due to COVID.
"Normally we'd be getting 3-year-old cars off that time, but because we were in what we were in, we're not seeing those lease returns coming back in," he said.
So already dealers are seeing a shortage of lease turn-ins, which may not improve for a couple of years.
Heflin hopes that manufacturers start filling new car lots again this spring with new inventory, which will take more pressure off used car prices.
And shoppers like Boyers will at least have a chance of finding a decent used car at a decent price.
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