Analysts warn of possible used car price plunge in late 2022

A new report from Automotive News suggests that the current used vehicle price boom will die in late 2022 and early 2023.

Using data and analysis from consulting firm KPMG, it’s predicted that average used car prices will fall about 20-30% in a return to a normal relationship to new car prices. Of course, this is contingent on vehicle supply, of which KPMG believes will reach equilibrium around October 2022 and into 2023.

Even if it takes until late 2022 for new car supply to catch up to demand, KPMG believes that used car prices will start their downward trend before then. This could happen because KPMG predicts that the market will anticipate greater new car supply and reduce used car prices to go along with it.