It takes awhile for declines in used car prices to filter into the CPI but it’s coming. In October, used car prices fell 2.3% and they’ve fallen another 2.1% in November, according to Manheim.
On a year-over-year basis, prices fell 5.8%.
“While November’s decline was only slightly less than October’s, the
move lower was on our radar, given the typical seasonal downward trend
that paused in August and September,” said Chris Frey, senior manager of
Economic and Industry Insights for Cox Automotive. “Prices still have a
chance of rising slightly in December, though we’re not predicting an
odd spike or trough. Rather, we’re expecting a measured movement through
the end of the month and the year, which should get us close to the
January forecast for a 4% year-over-year decline by December 2023.”
Compact and midsize cars led the y/y price declines.