Workshop: How to Track Used Car Price Dynamics in US
Several online information resources allow you to track used car price formation dynamics and trends in the US. They will help you determine the exact moment when purchasing a car in America is most lucrative.
Car Gurus
The company was founded in 2006 by Langley Steinert, co-founder of TripAdvisor. He saw an opportunity to improve the car buying experience through technology and data analytics.
Car Gurus search is based on mathematical algorithms perfected over many years with data from millions of advertisements is analyzed on a daily basis. Not only does it take the price factor into account, but also the features of various trims, options, and even the dealer’s reputation.
Separate categories include information about vehicles that have significantly influenced market pricing, used car price index, and the most frequently asked questions about car prices.
The site also offers an online price estimate calculator for your car.
URL: cargurus.com/research/price-trends
СarЕdge
An information resource of Zach Shefska, a second generation car dealer. The company conducts research on the US car market and uses a patented algorithm to create its own value rating.
It allows you to determine current pricing trends, as well as, for example, compare the average purchase price of a new car model with its future resale value. This way you will get the answer whether a particular new car model is a good or bad investment compared to more than 200 others.
You can search for information by a number of criteria: Best used cars by value raking, Cars with the lowest cost of ownership over 5 years, Best brands by resale value, etc.
URL: caredge.com/guides/used-car-price-trends-for-2024
Manheim Auctions
Some large US auctions (e.g. Manheim) and online car history services (CarFax) have developed their own methods for estimating used car prices.
At the same time, the Mannheim Index is increasingly recognized by financial and economic analysts as the main indicator of pricing trends in the used car market. More details about the indexing methodology can be found here (site.manheim.com/wp-content/uploads/sites/2/2023/07/Used-Vehicle-Summary-Methodology.pdf).
In short, the company applies statistical analysis to its database of over 5 million used car transactions per year. The price measurement method is independent of major changes in the characteristics of the vehicles sold.
The data is updated every two weeks, and Manheim also hosts a quarterly conference call to release its Used Vehicle Value Index (MUVVI).
URL: site.manheim.com/en/services/consulting/used-vehicle-value-index.html
What is happening to car prices today?
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For example, according to CarEdge data, prices in the used car market are gradually falling starting from early 2024. The decline has been observed for the first 6 weeks if the year in a row now.
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According to Car Guru, over the past 30 days (as of 02/13/2024), prices for used cars have dropped by 1.98%.
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Manheim confirms the downward trend in used car prices and believes that 2024 should show more typical market trends.
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