Used car sales will "normalize" in 2026

[Alex Snyder]

From today's ASOTU email newsletter:

• Used car prices are back up from a drop late in 2022.
• Cox Automotive estimates total used car sales will not reach pre-pandemic levels until 2026.
• Through mid-March, prices of used cars at auction increased by 8.8%. Used inventory levels are down 21% from a year ago and 26% from 2019.
• Another interesting datum is a 20% jump in leaseholders deciding to buy their vehicle at the end of their lease period. From 2019-2022, the residual value of vehicles compared to increasing prices and interest rates made buying the vehicles significantly cheaper than leasing a new one.
• In December 2022, Cox forecasted used car prices ending 2023 4.3% lower than 2022 and has not adjusted that forecast. Yet.

 

[Matt W]

Really interesting information, thanks for sharing.

 

[Jeff Kershner]

From today's ASOTU email newsletter:

• Another interesting datum is a 20% jump in leaseholders deciding to buy their vehicle at the end of their lease period. From 2019-2022, the residual value of vehicles compared to increasing prices and interest rates made buying the vehicles significantly cheaper than leasing a new one.

I'm hoping the programs/rates stick or get better around this time next year, when I need to decide if I'm going to buy out the lease on my Tacoma.