nbcnews.com
Used Vehicle Prices to Stabilize in 2025
Cox Automotive forecasts used vehicle wholesale prices to increase by 1.4% in 2025, stabilizing after significant drops following pandemic-inflated prices; the average listing price in December was $25,565, down 3% year-over-year; used vehicle sales are expected to increase by 1% to 37.8 million in 2025.
- What factors contributed to the volatility in used vehicle prices in the years following the pandemic?
- The projected stabilization in 2025 contrasts with the volatile price swings of the past few years, driven by supply chain disruptions and historically high price increases during the pandemic (46.6% in 2021 and 14.2% in 2020). While prices are stabilizing, they remain above pre-pandemic levels. The Biden administration noted the impact of used vehicle prices on inflation.
- What is the projected trend for used vehicle prices in 2025, and how does this compare to recent years?
- Used vehicle prices, after significant fluctuation, are expected to stabilize in 2025, with Cox Automotive forecasting a 1.4% increase in wholesale prices from December 2024. This follows a 0.4% rise in 2024 and sharp drops in 2022 and 2023 from pandemic-inflated prices. The average listing price in December was $25,565, down 3% year-over-year.
- What are the potential long-term implications of the current trends in used vehicle pricing for consumers and the automotive market?
- The continued, albeit moderate, increase in used vehicle prices suggests that the market has not fully corrected from the pandemic's effects. While wholesale prices are stabilizing, retail prices have not fallen as rapidly, indicating potential ongoing challenges for consumers. The 1-3% increase in used vehicle sales in 2025 suggests a return to more normal market behavior.
Cognitive Concepts
Framing Bias
The article frames the stabilization of used car prices as positive news, highlighting the benefits for potential car buyers. While acknowledging that prices remain above pre-pandemic levels, the emphasis is on the improvement from the dramatic price increases of the previous years. The headline (if one were to be created based on this text) would likely focus on the price stabilization, potentially overshadowing the fact that prices are still higher than before the pandemic.
Language Bias
The language used is largely neutral and factual, using terms like "increase," "decrease," and "fluctuation." However, describing the price changes in 2022 and 2023 as "drops" compared to the increases in 2020 and 2021 might subtly imply that the decrease is positive or expected.
Bias by Omission
The article focuses heavily on wholesale used vehicle prices and their fluctuations, using the Manheim Used Vehicle Value Index. While it mentions that retail prices for consumers don't always follow wholesale prices as quickly, it doesn't delve into the specifics of retail price trends or the disparity between wholesale and retail changes. Additionally, perspectives from consumers or used car dealerships are absent, limiting a complete understanding of the market dynamics.
False Dichotomy
The article presents a somewhat simplistic narrative of "stability" in used car pricing, contrasting the wild swings of previous years with the expected calm of 2025. However, it acknowledges ongoing volatility and the fact that prices remain higher than pre-pandemic levels. The framing of "stability" might downplay the persistent elevated costs for consumers.
Sustainable Development Goals
The stabilization of used vehicle prices will benefit lower-income consumers who rely more on used cars, reducing the economic inequality caused by the inflated prices during the pandemic. More affordable used vehicles increase access to transportation, essential for work and other opportunities.