Prices of Used Cars Declined by 14.7%

In the past 12 months, used car prices in the US have decreased by roughly 15%, a report says.

The Manheim Used Vehicle Value Index for the US decreased 0.4% month-over-month in March 2024, following a 0.1% fall in February.

Prices of trucks fell 0.6% and midsized cars were down 0.3%, according to the report. On the other hand, compact cars gained 0.8%, luxury was up by 0.5%, and SUVs increased 0.2%.

Meanwhile, electrical vehicles, EV, values decreased substantially, falling by 5.3% from February 2024. Year-on-year, prices of used cars dropped 14.7%, the biggest decline since December 2022.

Prices were down for luxury (-13%), SUVs (-14.4%), midsize cars (-17%), compact cars (-16.8%), and pickups (-15.4%).

In Nigeria, prices of used cars have skyrocketed due to exchange rates disadvantage in the local market. Higher duties and tariff has reduced the volume of imported cars into the country.

With few local producers, demand remains very high. Devaluation of the naira has affected the demand as much as it has also affected the supply side.