Prices on the used car market are stabilizing as we head into spring car buying season. In fact, mid-March brought the first wholesale price increase in months, albeit minor. In May, used car prices are slowly falling. We’ve seen this trend before in recent years, and more ups and downs are possible in 2024. With used car prices remaining volatile, it’s never been more important to track the value of your car.

So far in 2024, we’ve seen 13 weeks of dropping prices, and 8 weeks of rising prices. However, some used car segments are still falling faster than others.

👉 Bookmark this page. Each week we’ll update this URL with the latest used car price trends. Our hope is that by being informed of the trends in used car prices you can make smart financial decisions about when to trade-in, sell, or buy a car.

We also track new car prices. See the latest monthly update here.

Without further ado, let’s dive in.

Used Car Prices – May 2024 Update

What types of used cars are dropping, which are increasing? Is now a good time to buy a used car? Should you sell your car now, or wait for prices to go back up? Let’s answer those questions and more.

According to the latest used car market data from Black Book, the used car market is stabilizing at wholesale markets. When will retail used car prices drop? We’ll get into that below. First, let’s take a closer look at wholesale prices last week.

Is the car bubble bursting? Let’s look at the data.

This week, wholesale used car prices fell -0.24%, compared to -0.11% last week. Although this is the third consecutive wholesale price drop we’ve seen, it’s not enough to get excited about. It’s fair to say that used car prices are stable in May.

Used car prices again appear be stabilizing at the wholesale level, following some ups and downs earlier in 2024. That’s not good, as used car prices remain far higher than in years past.

Used car prices (wholesale sedans)

The overall car segment fell slightly by -0.09%, compared to a slight decrease of -0.01% last week. Some segments gained, while others dropped. Sub-compact and luxury car prices decreased the most. Sports car prices rose last week by quite a lot for just 7 days.

Used Truck Prices (Wholesale)

Wholesale truck prices are holding steady in Spring 2024. The overall truck segment fell last week by -0.29%. That’s compared to a decrease of -0.14% the week before.

Van prices continue to fall more quickly than other segments. Full-size pickups saw prices hold steady last week.

Since the onset of the pandemic, full-size vans have appreciated more than 60%, before falling off a cliff in 2023 and 2024.

Retail used car prices are falling slowly in 2024

As the data above shows, retail car prices are slowly but steadily dropping. Car shoppers are saying no to ridiculously high prices, especially as interest rates remain high. In late 2023, retail used car prices eliminated the year’s overall gains, returning to where prices were when 2023 began. In early 2024, used car prices are holding steady, even as new car prices drop quickly.

Hybrid and EV prices remain elevated above the overall market, but the gap is narrowing. The average transaction price for an electric vehicle is now 16.7% higher than the overall market. That’s less than the 20% premium for EVs we saw early in 2023.

Here’s our monthly update on EV prices.

Used Car Inventory – Retail Markets

The graph above shows that used car inventory is falling as dealers hesitate to take on more inventory. Used car days-to-turn is now at a five-year high. Car buyers are holding off on purchases as used car interest rates soar well beyond 14% APR.

New Car Price Trends (Monthly Updates)

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Older used cars have appreciated most

A new phenomenon we have begun tracking is that older used cars are appreciating more rapidly than younger used cars.

This is primarily a function of consumer demand. Retail customers that want to purchase a car at a sub $20,000 price-point are being forced to look at older used vehicles because the new ones have increased in value beyond their budget. This is scary, crazy, and a whole host of other words.

How much did used car prices increase in 2021?

Depending on who you ask (Cox Automotive, Edmunds, CarGurus, or Black Book), retail used car prices increased anywhere from 32% to 36% in 2021.

Black Book shows a 35% increase in retail used car prices for 2021 (the purple line). For comparison, the orange line shows a 7% appreciation for used car prices in 2020, and the blue line shows a 3% depreciation of used car values for 2019.

Here’s a month-over-month table showing used car price trends for 2021:

This data, supplied by Cox Automotive, shows the incredible ascent used car prices took in 2021.

Wholesale used car price trends are even crazier

Every used car has two prices; the wholesale price, and the retail price. As consumers we typically concern ourselves with the retail price, and with good reason, unless you have a dealer’s license you can’t buy a car wholesale at an auction.

That being said, wholesale used car prices are the lifeblood of car dealers, and the used car price trends we saw on the wholesale side in 2021 were truly unfathomable. While retail used car prices increased ~36% in 2021, wholesale used car prices rose 52%.

There is an obvious interplay between wholesale and retail prices. As wholesale prices increase, we can expect retail to prices to do the same.

Interactive data

Thanks to our friends at foureyes, we can share with you this real-time updating data set on used and new car prices.