Used car prices have hit record highs on dealer lots, but it looks like relief for shoppers is finally on the horizon.
The latest study from used car wholesaler Manheim found that the average price paid for a vehicle across 5 million transactions in July was $19,482, which is 2.6% lower than the previous month, following a 1.3% reduction in June.
The July figure still represents a 23.6% premium compared to last year and put the Manheim Used Car index at 195.5, which is down from an all-time record of 203 in May and compares to a baseline of 100 in 1995.
Moves in wholesale prices typically are typically reflected at the retail level within six to eight weeks.
The pickup segment drove the reduction with an combined drop from $30,789 to $28,154, while premium sports cars and luxury cars saw small upticks for the month.
Demand also slipped slightly from a seasonally adjusted annual rate of 39 million in June to 38.5 million in July, according to Cox Automotive.