In the first few months of 2022, wholesale vehicle prices saw a slight drop for three months straight.

However, prices began to rise again in June after three months of consecutive declines.

This price increase occurred amid:

• Higher gas prices
• Inflation
• Higher interest rates on homes
• Home prices still being high

One possible reason for this trend:

• More new car inventory became available early in the year (Feb-April), slowing down the used car market.
• In May and June, new car inventory decreased significantly again.

Data shows that major manufacturers like Mazda, Toyota, Honda, and Subaru have only 5-15 days of vehicle supply, making it harder for dealerships to run.

Dealerships may now be turning to used cars to fill their inventory gaps.

Discussion point: If you're a dealer, what are you seeing in terms of used car prices? Are retail prices rising, or are your margins getting thinner for used car inventory?