There’s early signs that used car prices are cooling nationally, and in Florida.
Edmunds auto analyst, Ivan Drury, said that the return to “some resemblance of normalcy” is welcome in a market that has experienced significant price volatility for consumers in recent years.
Following the start of the pandemic, Drury said the auto market suffered significant supply chain disruptions and shrinking new car inventory.
He said shortages of new vehicles forced more people into the used car market, driving up prices.
“And after years of this kind of madness, we’re finally getting to the point where you have normal seasonal changes and used car values … are coming down … and causing a cascading effect downward,” he said.
The average cost of a used vehicle dipped 5.5% nationally between Q3 2022 and Q3 2023, according to Edmunds data.
In Florida, the average cost of a used vehicle fell 8.6% from $31,843 to $29,101 for the same time frame.
While prices are cooling, Drury said they still far exceed pre-pandemic levels.
“I don’t think we’re getting back to pre-pandemic levels anytime soon – if not ever – but at least there’s some resemblance of normalcy in the market,” he said.
In turn, he said that car shoppers’ purchasing power has diminished.
Shoppers who bought a used car in 2019 would have to spend an additional $10,000 to obtain a similar vehicle in today's market, according to Edmunds.
Gabriella Paul covers the stories of people living paycheck to paycheck in the greater Tampa Bay region for WUSF. She's also a Report for America corps member. Here’s how you can share your story with her.
