Used Car Prices Beginning Road Back to Normal While used car prices showed modest declines in early 2022, overall prices remain near all-time highs, at an average of $31,450, according to a new monthly report from CoPilot, a car shopping app. CoPilot market analysis further revealed used vehicle prices are likely to accelerate their decline in the coming months, with the greatest pressure on the more recent year models consumers have been turning to as a substitute for new cars in the wake of record inventory shortages. In order to offer a real-time metric to track price inflation in used cars, CoPilot has created the first-ofits-kind Used Car Price Premium Index, tracking the “return to normal,” showing the differential between what any individual used car would have been worth today if not for the extraordinary dynamics of the past two years and the resulting unprecedented inflation in car prices, which have historically only depreciated. CoPilot has also launched Price Pulse, a free tool for car shoppers.
Price Pulse allows consumers to check current prices and the price premium on any car; this helps them confidently choose the right car, and know when is the right time to buy. As of May, CoPilot’s index showed average used car prices
are $9,375, or 42.5%, above their projected normal levels. The index also revealed which brands and types of vehicles have the highest price premiums and which are furthest along the road back to normal prices.
While the May Used Car Price Premium level is higher than at any time in the past, CoPilot’s data also revealed significant downward price pressure building in the market for recent model year used vehicles. While the price premium for 1- to 3-year-old vehicles reached an all-time high of $11,765, the average time these vehicles have spent on dealer lots has jumped by 47% over the past year. This glut of aging inventory is building pressure on dealers to start dropping prices more aggressively. When combined with increasing payment levels due to higher interest rates, price declines among more recent used car models are likely to accelerate significantly in the coming months. “CoPilot created the Used Car Price Premium Index as the first consumer-centric measure of inflation in the used car market. No one wants to be one of the last people to dramatically overpay for anything, whether it’s a car, a house or a stock,” said Pat Ryan, CEO and
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