The average used car listed for $25,172 in August, a 0.9% drop from July’s list price and about 6% lower than the end of August last year.
The decrease doesn’t mean dealers marked down many vehicles. Instead, last month, the average used car sold was slightly older and thus less expensive.
The data come from Cox Automotive, the parent company of Kelley Blue Book.
Prices are likely to fluctuate in early fall. The best way to predict retail used car prices is to track the wholesale prices dealers pay at auction for used cars. Those increased slowly through much of the summer before dropping early this month.
It takes about six to eight weeks for a wholesale price change to show up chalked on the windshields of used cars. So, prices could rise gently, then fall gently as the weather cools.
Related: Discounts on New Cars 50% Higher Than a Year Ago
The Federal Reserve cut interest rates this week for the first time in more than four years, but analysts say the cut will take time to show up in the auto loan market – shoppers may still benefit from waiting for borrowing costs to decline.
Those who must shop will find the oldest, least expensive new cars hard to find.
Used cars below $15,000 continue to show low availability, with only 31 days’ supply — the lowest figure since March 2021.
The top five best-selling used cars in August were listed at an average price of $23,682.
