September Used Car Sales Decline 3.9% Amidst High New Vehicle Prices

Used Auto Market Performance in September

• 📉 September used car sales saw a decline of 3.9% year-over-year, according to Cox Automotive's Mannheim used auto report.
• 📈 Despite the sales dip, used car prices were up 2% compared to last year, though fractionally lower than August.

Electric Vehicle (EV) Market Trends

• ⚡ Luxury model sales, particularly EVs, increased by 2.3%, driven by high demand.
• 💰 The market saw continued interest in used EVs, with values up 0.8% compared to August, partly influenced by the expiration of federal tax credits for new EVs and partial credits for used models.

Factors Influencing Used Car Prices

• 🚗 New vehicle prices are near a record high, which is a primary driver pushing consumers into the used car market.
• ⚠️ This dynamic is less a reflection of consumer behavior and more a consequence of supply and pricing in the new vehicle sector.

Impact of Tariffs on the Auto Market

• 🌐 While used cars are not directly shipped, they are impacted by tariffs indirectly through their correlation with new car prices.
• 💸 Tariffs can increase the cost for automakers, leading to higher new vehicle prices, which in turn elevates demand and prices in the used car market.