Used car prices dropped again in April, but at a slower pace than March.
A shortage of new cars and overall inflation has driven prices to record highs in recent months, but automakers are starting to see improvements in parts, supplies and production.
According to the latest Manheim Used Vehicle Value report, wholesale prices paid by dealers fell an average of 1% from March to April, adjusted for several factors, compared to 3.3% from February to March. It marks the fourth straight month of declines.
Retail used car sales were softer than expected during the month, down 13% month over month, which Manheim notes coincides with a delay in some tax return payments.
The wholesale prices tracked by Manheim typically lead retail prices by several weeks.
In March, iseecars.com reported an average used car transaction price of $34,429 based on 1.8 million sales, which was up 30.4% from the prior year.