There is a possibility Cambodia may benefit from USA used car pricing as they are trending downwards after years of increases. These increases were mainly from chip shortages and thus a short supply of new cars.
Used cars in the USA are finally becoming more affordable, as reported by Cox Automotive. After a steady increase in prices across all segments, the prices of used cars are now decreasing. However, it’s important to note pickups are an exception and are actually slightly more expensive.
Surprisingly, even used SUVs are becoming more affordable, indicating a cooling market for sport utility vehicles. This is unexpected considering their recent popularity, but it seems that trucks have surpassed SUVs in demand within the used car market. This conclusion is drawn from analyzing the used car prices reported in Cox Automotive’s Manheim Index:
The Manheim Used Vehicle Value Index (MUVVI) stabilized in the third quarter, with September showing steady prices after experiencing fluctuations and declines in the first half of the year. The index rose to 214.3 in September, a 3.9% decline from the previous year.
When compared to September 2022, the prices of vans and SUVs decreased by 2.3% and 3.5% respectively, performing better than the industry as a whole. Compact cars experienced the largest price decline at 9.9%, followed by luxury cars at 6.7% and midsize cars at 5.9%. On the other hand, pickup trucks saw a 0.7% increase in prices, making them the only segment with a positive year-over-year performance.
The report does not include data on crossovers, but overall, used car prices have experienced a decrease. This might come as a relief for those who have been waiting for prices to return to pre-pandemic levels.
People are keeping their cars for longer, therefore supply of used cars has not recovered. It’s unlikely supply will improve in the short term, that would result in significantly cheaper used cars.
It’s too early to know if used car pricing will return to pre-pandemic levels, it seems pickups won’t be decreasing anytime soon. Despite only experiencing a modest 0.7% increase, the prices of used pickup trucks have still gone up.
According to Business Insider, the average price of used vehicles is now $26,717, representing a slight decrease. Compared to the same time last year, the supply of used cars has improved, but it is still limited. Currently, there is a 47-day supply of used cars, which is lower than the 54-day supply in the previous year.
Only time will tell if Cambodia Benefit from USA Used Car pricing. However, with pricing of new cars becoming cheaper, sales are trending more to new cars in the future.