Vehicle Prices Cool Down, Offering Relief from Inflation

Car and truck prices in the US are slowing down or even falling after years of increases, helping ease inflationary pressures.

More vehicle inventory at dealers after years of shortages is causing prices to cool. Dealers had 2.6 million vehicles at the end of January vs 1.7 million a year before.

Average new vehicle price dropped 1.2% in January 2023 compared to a year ago, down to $47,338 from a peak of $48,516 in December 2022.

Automaker discounts averaged $1,469 per vehicle in January, 5 times higher than a year ago, with more discounts expected.

Used vehicle prices dropped 3% from a year ago and 12% from April 2022 peak, with further declines expected before a rise in spring.