The used car market has begun to cool down in the United States after prices for this type of second-hand vehicle they had a historic drop of 14.9% during last December, in its measurement year after year.
The data resulted from the measurement made by the Manheim Used Vehicle Value Index (MUVVI), which also reported that in its month-to-month comparison, the price was 0.8% higher, compared to November last year.
The MUVVI also issues a rating that for December was 219.3 points, a figure that remains above pre-pandemic levelswhen the average rating was 151.5 points, this in 2019.
For Jonathan Smoke, chief economist at Cox Automotive, while December’s drop shows historical data, it’s important for consumers to keep in mind a general scenario of the used car market in the country.
“These last three years have been extremely volatile for the market and these falls follow record increases. In December 2021, we were up 47% year-over-year. Pre-pandemic levels will likely never return, but all indicators point to breaking even in the second half of 2023,” Smoke said in a report for Yahoo Finance.
The used car market had been a natural haven for shoppers when new car prices were skyrocketing.
However, over the past year, used car prices have been a constant in reports from the Bureau of Labor Statistics on inflation, such as one of the components that rose the most during 2022.
This drove buyers away and now a historic price drop could bring them back as the new car market recoverswith which the demand for second-hand cars cools.
An analysis by Cox Automotive of Dealertrack data found used car sales at dealerships fell 7% in December on a month-over-month basis and as much as 10% on a year-over-year basis.
On the contrary, new car sales increased 4.9% in its year-to-year comparison during December, while in the month-to-month measurement, growth was 12.2%.
Meanwhile, in the new vehicle sector, brands considered premium are experiencing the fastest recovery as far as sales are concerned.
In this segment, the cars of the German manufacturer BMW retained number one in sales worldwidefollowed by Mercedes Benz, also of German origin.
Meanwhile, in the United States, General Motors regained first place in sales, surpassing Toyota, mainly driven by sales of SUVs and pick-up trucks.
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Source: La Opinion
