Used Car Prices Still Climbing Despite Global Chaos Giggety

• Used vehicle prices are up 6.2% year-over-year, reaching levels not seen since the summer of 2023.
• Despite geopolitical tensions and high gas prices, demand for used vehicles remains surprisingly strong.
• Tight inventory, with days' supply falling below 40 days, contributes to rising prices.
• Cox Automotive has slightly increased its used vehicle forecast for the year due to stronger-than-expected demand.

Giggity Giggity All Right Used Car Market Defies Doomsayers

Well, hello there. Quagmire here, reporting live from the front lines of…used car lots? That's right, folks. Seems like the market's still got some pep in its step, even with all the global shenanigans going on. Who would have thought, eh? According to the Manheim Used Vehicle Value Index – and believe me, I know a thing or two about indices – used car prices are up a respectable 6.2% compared to last year. Giggity. Apparently, even wars and high gas prices can't keep people from wanting a sweet ride. Although, I always preferred them young and fresh right out of the dealership, if you catch my drift, Giggity.

Tight Supply Makes the Heart Grow Fonder

Cox Automotive, those brainy number crunchers, are saying that the supply of used vehicles is tighter than Peter Griffin's pants after Thanksgiving dinner. Apparently, that's driving prices up, because everyone knows what happens when supply is low and demand is high. I have an example for you from my personal life but... lets stick to cars shall we? They're saying that the number of days' supply for used cars has dropped below 40 in March which is the lowest point in a while. And if Cox Automotive is to be believed they forecast prices to rise about 2% this year so you better go buy now. But hey, if you ask me, a little scarcity just makes things more interesting, know what I mean? Like a rare bottle of scotch, or that one time I found a girl who actually liked my stories. Speaking of stories, if you want to read one about a company in a similarly wobbly industry check out this great article Macy's Navigates a Wobbly World Still Standing.

Affordability Driving Demand

The article says that the average listed price of a used vehicle was $25,287 as of February, according to Cox. That's significantly less than the $49,100 average for a new vehicle. That's a big difference, especially for those folks who are, shall we say, financially challenged. So, people are buying used because it's the sensible thing to do. I mean, I respect a woman with a good head on her shoulders, and I respect a buyer who makes a smart financial decision. Although, I'll take a hot tub over a savings account any day. "Giggity. Giggity. Goo."

Forecast Slightly Raised, But Clouds on the Horizon

Because of the stronger-than-expected demand, Cox is now predicting 20.4 million used vehicle sales this year, up a hair from their previous forecast. But don't get too excited, folks. They're also saying that sales will likely cool off in the second half of the year. So, it's like a beautiful sunset. Enjoy it while it lasts, because tomorrow, who knows? Maybe aliens will invade and demand all our used cars. Or worse, maybe Peter Griffin will try to buy one and ruin it for everyone. "Alright."

New Car Woes Fueling Used Car Gains

According to these experts, the reason the used car market is doing so well is the high prices of new cars, making more and more people head to the used car lot. In addition, lower new-vehicle sales are constraining trade-in volumes and limiting supply into the used market. I see that the new vehicle market is expected to hit about 15.8 million vehicles this year according to the article. If it was up to me though, all cars would have a built in bed in the back, am I right.

Used Cars Still King of the Road

At the end of the day, it seems like used cars are still the people's choice. They're more affordable, readily available, and, let's be honest, sometimes they've got more character than those shiny new models. And like I always say, "Life is like a box of chocolates, you never know what you're gonna get." Or in this case, "Life is like a used car, you never know what kind of stains you're gonna find." Giggity.