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Used-vehicle prices at wholesale, dealer-only auctions in December 2021 ended 2021 at 48.1% higher on average than December 2019 and 34.8% higher than  December 2020, according to KAR Global.

KAR reported the average wholesale auction price for all used vehicles was $16,026 in December, an increase of $5,204 over December 2019. Used trucks averaged $18,638 in December, 44.8% higher than December 2019. Passenger cars experienced an even greater percentage increase. The average used car was $12,084 in December, up 48.6% from. December 2019.

The auction retailer reported retail used vehicle prices do not necessarily follow wholesale auction prices 100%. But wholesale auction prices indicate what franchised, new-car dealers and independent, used-car-only dealers may pay for much of their used vehicle inventory. Those increases are typically passed on to consumers.

Dealers also stock their used-vehicle inventory with trade-ins and lease returns and buy vehicles directly from consumers and other dealers for resale.

Prices for used vehicles skyrocketed because pre-owned vehicles are in short supply when compared to demand.  This will continue in 2022. Dealers produced fewer new cars in 2020, leaving fewer 2-year-old cars to sell in 2022.

Fewer used vehicles may also arise from consumers postponing new vehicle purchases. Dealers will receive fewer trade ins as a result.  Another impact to used vehicle inventories comes from consumers buying used when they cannot find the new vehicle they want.

Originally posted on Auto Dealer Today

Staff Writer

Staff Writer

Editorial

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