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Demand for fuel-efficient used cars grows amid high gas prices
CNBC • • general
Key Points:
- Cox Automotive lowered its forecast for used vehicle prices in 2024, expecting only a 0.2% increase in the Manheim Used Vehicle Value Index, down from a previous 2% rise forecast.
- The index declined 1.95% from July to September 2024, with September marking the first month since March 2025 that prices were not higher year-over-year, reflecting accelerating depreciation.
- Rising interest rates, high fuel costs, and inflation are pressuring used vehicle prices, especially for large trucks and SUVs, while electric and smaller fuel-efficient vehicles have seen increased values.
- Despite relatively healthy retail demand, dealers appear to have reached a ceiling on pricing, with the average used vehicle listed at $27,239 compared to over $50,000 for new vehicles.
- The used vehicle market continues to adjust amid economic challenges, with pricing trends moving closer to pre-pandemic norms after years of volatility.
