--- title: "Used Car Prices Are Falling Again… For Now" description: "Wholesale used car prices are the lowest they've been all year, which means retail prices should soon follow." date: "2023-06-11" modified: "2023-06-11" authors: - name: "Nico DeMattia" job_title: "Contributing Writer" link: "https://www.thedrive.com/authors/nico-demattia" url: "https://www.thedrive.com/news/used-car-prices-are-falling-again-for-now" categories: - "News" --- # Used Car Prices Are Falling Again… For Now ![car lot]() *via Getty* Used car prices have been coming down, after being at record highs during the Covid-19 pandemic, but they haven't reached pre-pandemic levels yet. While they won't get that low anytime soon, it seem that [used car prices]() will come down again in the coming months, as wholesale car prices are the lowest they've been all year. According to the [Manheim Used Vehicle Value Index](), May's wholesale auction prices—which is what used car dealers pay for their inventory—were down 2.7% from April, the second consecutive month-to-month drop. Not only that but they were down 7.6% from May of last year, showing a slow but steady decrease year-to-year. While that decrease isn't linear, and there are small raises some months, the curve is headed downward. When wholesale used car prices go down, retail prices typically follow. It might take between six and eight weeks but we should see another drop in retail used car prices. However, don't expect pre-pandemic prices in the foreseeable future. ![]() **via Getty** “Taking a longer view, May’s year-over-year decline accelerated from April and March; however, the rate of decline might slow over the next several months as we encounter the lower prices seen at auction from May through November last year. Two consecutive reads in either measure do not a trend make, as used retail inventory is still below last year, and that tends to keep buyers at the auction, supporting prices," said Chris Frey, senior manager of Economic and Industry insights for Cox Automotive. I think it's fair to see that we're all sick of grossly high car prices, new or used. Customers have been getting the short end of the car buying stick since the pandemic, as used car prices are up and it seems like you can't get any new car without paying [dealer markups](). Hopefully, we're seeing some light at the end of the tunnel. *Got tips? Send 'em to tips@thedrive.com* ## Author Nico is a writer and reviewer from New Jersey who probably thinks he’s a lot funnier than he actually is. His love of cars began when he was just a kid playing Gran Turismo 3, grinding out enough race wins with a Mazda Miata to save up for an in-game RUF 911. That passion for small, lightweight sports cars drove his desire to learn more about the industry, get his hands on as many cars as he could, and bring those experiences to life on the page. He cut his teeth writing about BMWs, Volkswagens, and Audis, mostly, and has owned far too many of each. He’s on his fourth 3 Series sedan, but all of his old, cheap German cars have forced him to learn more about car maintenance than his mechanical capability can handle. Too many late nights have been spent scrambling to get a car running by morning so he could get to work. For some reason, he never seems to learn that old Bimmers probably aren’t the best daily drivers. But he loves more than just old German cars. He’ll gladly drive and discuss anything with four (or even three) wheels. Cars aren’t his only passions, though. Nico is also a big nerd and loves movies, video games, comic books, and cares far too much about the New York Giants. So don’t be surprised if you see football references or dumb, obscure movie quotes in any of his car reviews. ### Author social links [Instagram]() [LinkedIn]()