Used-Vehicle Retail Listing Prices Decline

Takeaway: Used retail listing prices in 2023 were lower year over year each week compared to 2022 and ended the year down 4%. Still, the average list price of a retail used vehicle in the market – which held steady at around $26,700 throughout 2023 – was higher versus 2019 by more than 35%, as relatively tight used-vehicle inventory levels and a lack of older, more-affordable used vehicles conspired to hold prices steady at a level below 2022 but well higher than pre-pandemic norms.

What’s next: As we move through 2024, as newer and higher-priced age segments influence the overall used-vehicle mix, overall listing prices will continue to show strength. Right now, the market is seeing an increase in the mix of MY23 units, which helps keep prices elevated. So, while the MY20 and MY22 models are declining in mix, the MY21 and MY23 are increasing – putting a counterbalance to older units that may have fallen more in value. At the same time, downward pressure on new-vehicle prices is expected to continue in the year ahead, keeping a lid on used-vehicle listing prices.