Used car prices are going to increase this year after going down in the fall of 2022, as vehicle prices saw a 4.3% increase last month.
The increase is the biggest for the month of February since 2009, according to Manheim, which sells used cars to dealers. In another report, conducted by Black Book, prices of used cars rose 0.46% for the week ended March 11, which marks the largest increase within a single week since November 2021, according to USA Today.
“Inflation’s out there,” said Pat Ryan, the CEO of CoPilot, a car shopping app.
In the last four weeks, the average used car price has risen by $700 and is now over $40,000, according to CoPilot data.
Ryan also added that cars purchased by consumers in February were probably bought by car dealers in either December of last year or in January, which was when wholesale prices were lower. The cars that consumers buy in March and April, on the other hand, will be higher in price to reflect the cost that dealers paid for them in February.
Though the prices of used cars are increasing, Ryan believes that consumers will continue to buy used cars, higher prices or not.
“With tax returns coming in, they can keep buying cars,” said Mike Trudeau, an executive at Montway Auto Transport. “I see no reason why they couldn’t continue through March and April.”