P&A Providers & Administrators
MenuMENU
SearchSEARCH

Used Vehicle Prices Drop as Other Costs Remain High

The most recent Consumer Price Index from the U.S. Bureau of Labor Statistics shows a slight but promising decline in used car prices.

December 14, 2022
Used Vehicle Prices Drop as Other Costs Remain High

The most recent Consumer Price Index from the U.S. Bureau of Labor Statistics shows a slight but promising decline in used car prices.

IMAGE: Getty Images

2 min to read


Vehicle prices have skyrocketed to record prices since the pandemic began because of reduced inventory amid heightened demand. But there’s a silver lining appearing in the clouds—at least for used car buyers, finds the most recent Consumer Price Index (CPI) from the U.S. Bureau of Labor Statistics.

The November CPI shows a slight but promising decline in used car prices. The report reveals that while the overall CPI rose over 7% year over year in November, used car prices fell 3.3% from 2021 prices.

Ad Loading...

This news follows reports that wholesale prices for used cars dropped 15.6% since January, according to the Manheim Used Vehicle Value Index. In normal times, a wholesale drop would have driven a faster decline in used car prices. But demand for vehicles remains high, and dealers hold inventory they purchased at far higher prices, so used car vehicle prices will drop slowly over time.

Though used car prices show some pricing promise, transaction prices for new vehicles remain elevated with no signs of falling. In fact, the average new car transaction price rose slightly to $48,281 in October and many new models still sell for over MSRP.

Dropping prices are a boon for buyers but not for used car retailers. Carvana stock tanked recently, and CarMax has reported selling 15,000 fewer vehicles this year than in 2021.

Economic conditions remain poor as well, which also could affect new and used vehicle sales.

The CPI reports the food index increased 0.5% in November, with the food at home index also rising 0.5%. The energy index decreased 1.6% as did the gasoline index, natural gas index, and electricity index in November.

Ad Loading...

However, the index for all other items rose 0.2% in November, after rising 0.3% in October. The indexes for shelter, communication, recreation, motor vehicle insurance, education, and apparel were among those that increased in the last 30 days. Only used cars and trucks, medical care, and airline fares indexes dropped in November.

Over the last 12 months, the “all items less food and energy index” rose 6%, while the energy index increased 13.1%, and the food index increased 10.6%.

Originally posted on Auto Dealer Today

More Industry

Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Ad Loading...
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
Ad Loading...
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →
Ad Loading...
white SUV parked in front of a body of water with a gray sky background
Industryby Lauren LawrenceAugust 5, 2026

Hybrids and SUVs Gaining Ground

The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.

Read More →