Conditions have shifted to favoring buyers; but with tight supply, the market is close to a balance between buyers and sellers.
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Analysis: Consumers are repairing vehicles and holding them longer to avoid historically high used-car prices. The real question is: How long will used inventory remain tight and prices above normal?
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CAR 2023: What happens when you put four remarketing economists and analysts in one room? Lots of data, predictions, trends, and uncertainty.
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Prices usually decline in the first two weeks of April, but in each of the last two years prices increased substantially during these same weeks, the Manheim Index shows.
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Although prices are falling, they likely won't decline too much given the tighter inventory compared to 2021.
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The month also ended at near 41 days’ vehicle supply, down from 48 days at the end of January and 13 days lower than February 2022 at 54 days' supply.
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Future pricing trends of new electric vehicles and resale values of used ones remain undefined and unpredictable for the long-term.
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All eight major vehicle market segments saw seasonally adjusted prices that were lower year over year in January.
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The used-vehicle market faces a challenging year ahead as demand weakens and supply of nearly new vehicles is particularly constrained.
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As the supply of new vehicles improves rapidly, demand and prices for used ones are declining.
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