Used Car Prices Expected to Fall Further in 2024, Cox Automotive Says
Cox Automotive has revised its used vehicle price forecast downward, while demand for fuel-efficient cars continues to climb.
Used vehicle prices are projected to decline more steeply than analysts previously anticipated this year, according to a new forecast from Cox Automotive, one of the automotive industry's leading data and remarketing firms. The revised outlook signals continued softening in a market that surged to record highs during the pandemic era supply crunch.
The forecast revision arrives amid shifting consumer behavior, with demand for fuel-efficient vehicles registering notable growth during the third quarter. Buyers appear increasingly cost-conscious at the dealership level, gravitating toward models that promise lower operating costs at the pump as economic pressures persist across household budgets.
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The convergence of falling used car prices and rising interest in fuel-efficient options reflects broader affordability concerns shaping the auto market heading into year's end. Analysts have pointed to elevated interest rates on auto loans as a key factor suppressing willingness to pay premium prices for used inventory, adding downward pressure on valuations across vehicle segments.
For consumers who have been waiting out the post-pandemic price spike, the updated Cox Automotive projections may represent an improving window to enter the used vehicle market. Dealers, meanwhile, face margin compression as wholesale and retail values continue to normalize from their historic peaks.
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