May 2024 Retail Market Update Report

Used Retail Prices Industry Update

• Used retail prices at franchised dealers experienced 1.2% or $353 increase in April compared to March.
• April’s lift marked the second consecutive month of positive price movement on the retail side. From a historical perspective retail prices remain strong and only $2,256 below their all-time high recorded in April 2022.
• Through the first four months of the year, used retail prices are 2.8% lower than during the same period in 2023. Retail prices are expected to remain strong, however, expect cooling over the second half of the year.

Used Retail Versus Wholesale Update

• While used retail prices heated up in April, wholesale prices experienced a slight 0.4% or $55 decline as dealer activity in the lanes cooled for the second consecutive month.
• With filing season now behind us, statistics released by the IRS for the week ending May 10, 2024, showed that the average amount refunded this year increased by 2% to an average of $2,869, a nice boost for consumers using refunds towards new or used vehicle purchases.
• Through the first four months of the year, wholesale prices are 10.1% or $1,743 lower than during the same period in 2023. As a result, the used retail versus wholesale price gap remains much wider than during pre-COVID.
• In April, the retail to wholesale gap reached an average of  $13,416, as dealers continued to do a great job of maintaining favorable used retail prices, and sourcing used inventory from channels other than only wholesale.