Jul 10, 2023 - Economy

Used car prices tumble in largest drop since the pandemic

Data: Cox Automotive; Chart: Axios Visuals

Wholesale used car prices fell 4.2% in June from the previous month — the largest monthly drop since the pandemic hit, according to a closely watched indicator out Monday.

Why it matters: It's another sign that inflation is easing — used car prices were a pandemic-era inflation poster child.

  • Prices fell 10.3% on an annual basis, according to the data, from the Manheim Used Vehicle Value Index, which tracks wholesale prices of used cars sold at auction and typically predicts prices that shoppers see on auto lots a few months later.

What we're watching: The Consumer Price Index for June will be released Wednesday morning.

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