WHEN WILL USED CAR PRICES DROP IN 2022 (CURRENT DATA)
Will used car prices drop in 2022? When will used car prices drop in 2022?
Used-vehicle inventory rose in December with the days’ supply hitting 51 for the first time since January 2021.
Days’ supply began dropping last January, bottoming out at 30 in April and inching its way higher ever since. Still, days’ supply at the end of December was nearly four days below the December 2020 level.
So that's inventory. But what about the prices of used cars? When will these used car prices come down?
The average listing price exceeded $28,000 for the first time ever, according to the Cox Automotive analysis of vAuto Available Inventory data.
The average used-vehicle listing price was up 28% at the end of December compared with the year-earlier and 42% higher than at the end of 2019.
Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) increased 0.8% in the first 15 days of January compared to the month of December.
In December, the Repair Order Volume Index was up 2.6% month over month from November, at 87.9, and was up 3.3% from December 2020 but down 6.4% from December 2019.
The overall volume of repair orders being processed at U.S. franchised dealerships continues to be lower compared to the months prior to the onset of the global pandemic.
Lately, owners are delaying service more because of concerns over costs rather than fewer miles being driven.
The average revenue generated per repair order rose for the sixth straight month.
The over 60-day delinquencies increased in December for the seventh month in a row and were up 4.4% year over year. In December, 1.45% of auto loans were severely delinquent, which was an increase from 1.36% in November and the highest severe delinquency rate since May 2020.
Compared to a year ago, the severe delinquency rate was 5 basis points higher. In December, 5.48% of subprime loans were severely delinquent, which was an increase from 5.17% in November and the highest severe delinquency rate since February 2020.
The subprime severe delinquency rate was 45 basis points higher year over year. Loan defaults declined 0.7% in December from November but were up 6.3% year over year.
New-vehicle inventory, particularly for domestic automakers, continued to climb, exceeding 1 million units near the end of December, according to a Cox Automotive analysis of vAuto Available Inventory data. Prices also kept rising, setting new records, with the average listing price exceeding $45,000.
The total U.S. supply of available unsold new vehicles stood at nearly 1.1 million near the end of December. That compared with the revised November available supply of 935,100 vehicles. December marked the first time since early August that supply hit and even edged past 1 million units.
Still, available supply is down 62% behind the same period in 2020. In raw numbers, the current supply of unsold new vehicles is more than 1.8 million vehicles less than the stock of a year ago and more than 2.5 million less than in 2019.
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