Using data and analysis from consulting firm KPMG, it’s predicted that average used car prices will fall about 20-30% in a return to a normal relationship to new car prices. Of course, this is contingent on vehicle supply, of which KPMG believes will reach equilibrium around October 2022 and into 2023.
Even if it takes until late 2022 for new car supply to catch up to demand, KPMG believes that used car prices will start their downward trend before then. This could happen because KPMG predicts that the market will anticipate greater new car supply and reduce used car prices to go along with it.
The dip that analysts believe is coming is going to be a sharp one. Used car prices are up about 42% on