Despite the increase in the supply of late model vehicles, wholesale prices of 2-to-5-year-old vehicles sold at auctions increased 5.3% since January 2018. Although there is no reliable data for actual retail used vehicle sales, there is ample anecdotal evidence of rising demand for used vehicles (both late models and older units). So, while increased used vehicle supply has depressed used vehicle values since 2015, that trend has reversed this year.
- After two years of above-normal depreciation, used car prices reversed.
- Rising off-lease supply is offset by higher consumer demand.
- Market and economic forces combine to boost retail used vehicle demand.
- The paper sources data from MK&A partner, RVI Analytics.