Used car prices fall for first time this year as gas prices spike
CNBC • • general
Key Points:
- Used car prices in the U.S. fell 1.6% in April compared to March, marking the first decline since October, amid rising gas prices linked to the war in Iran.
- Cox Automotive's Manheim Used Vehicle Value Index showed prices were still 1.8% higher than a year ago, but affordability concerns are pushing demand toward older and all-electric vehicles.
- Gas prices surged to a national average of $4.56 per gallon by late April, up $1.12 from a year earlier and 47% since February, impacting consumer spending power.
- Retail used car prices are expected to rise about 2% this year, with the average listed price at $25,390 as of March, while used electric vehicles remain priced over $9,200 above the overall market average.
- The Manheim electric vehicle index increased 7.2% year-over-year and 1.4% from March, reflecting growing EV demand driven by higher fuel costs despite the end of federal incentives.
