Posted 3/16/2024, 3:30:36 PM
Pandemic Car Buyers Face Risk of Negative Equity as Used Prices Plummet
- Buyers who paid over MSRP during the pandemic are now at risk of negative equity as used car prices fall
- One- and two-year-old used cars have faced the biggest drops in value compared to older used vehicles
- The average transaction price for used vehicles dropped over 4% compared to a year ago
- More than 20% of new car sales with a trade-in had negative equity, the highest in 2 years
- Large luxury cars and mainstream SUVs have some of the biggest used car bargains, but affordable transportation is still limited