AutoIMS: Used Car Market Softens

By Staff Writer August 23, 2023 567

In Q2, new-vehicle sales increased in the United States, especially sales of electric vehicles, according to AutoIMS Industry View report.

The wholesale used car market, however, has started to soften. High prices, high interest rates and high inflation continue to be a theme leading to a slight market slowdown that may continue through the year end.

AutoIMS data showed average damage estimates stand out with a 20% increase compared to last year. Inflation may account for some of this increase. It’s also possible that vehicles with more damage are now less likely to sell upstream; buyers can be a bit pickier in this market. With an increase in damage, it’s not surprising that AutoIMS also sees a corresponding increase in average auction charges.

The data also indicates it’s taking slightly longer to get vehicles delivered to auction and slightly longer to sell once at auction. The road ahead may be challenging for auto remarketers, AutoIMS data show.

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Last modified on Wednesday, 30 August 2023 10:29