Used Car Prices Are Starting to Drop After Record Highs

Used car trade-in values are starting to fall back to normal levels, according to Edmunds analysts, months after soaring to record heights due to the COVID-19 pandemic.

These past few months have been some of the best times to sell or trade-in a car, but the window of higher values is now starting to close. But while values are falling, they are still well above where they were at the beginning of the year.

"We're finally hitting the tipping point in the used car market," said Ivan Drury, Edmunds' senior manager of insights. "If your household has a second vehicle that you are thinking about selling because it's going unused during the pandemic, there's no point in holding onto it in the hopes of its value increasing again. You won't get a dramatically higher value for your trade-in than you would have just last month, but you should still get a bit more money than usual since values are still inflated."

What you need to know

• The average value for all vehicles traded in during the month of October dropped to $15,874, a 3.3% decrease compared to September's $16,411 average, according to Edmunds data. The average value for 3-year-old vehicles also dipped in October to $20,401, a 1.7% decline from last month.




• According to Edmunds data, the average trade-in value for all used Ford F-150s dropped to $23,677, a 5% decrease from September. The average trade-in value for all used Honda CR-Vs fell to $15,461, a 3% month-over-month decline. And the average trade-in value for all used Toyota Camrys dropped to $12,508, a 7.6% decrease.




• Now is still a good time to sell or trade in your car, before values drop further.




• For those looking to buy a car, prices won't drop in the same manner as trade-in values, but shoppers will have more to choose from in the coming months.




• The charts below show how the values have trended over the year.

Edmunds says

Intrigued? Just head over to our appraisal tool to see how much your car is worth. If your vehicle qualifies, you'll get an instant offer good for seven days, which you can redeem at a participating dealer or take to another to help bolster your trade-in negotiation.