Several reasons for these numbers.
Retail price lags wholesale price by at least 3 mo’s. Retail used car pricing was ridiculous for several years with car values actually going up. As was wholesale. The wholesale market is somewhat correcting, but as dealers bought their current inventory at previously inflated wholesale that means to make any kind of profit they have to sell them based on their current cost.
Our best lender went from using NADA values to, well I don’t know what values, but they use “Carbly”. Scan vin and it give value which is thousands less than NADA. Which puts dealers in a bind because it’s less than wholesale paid last month.
Thanks for the post.
We are going to wait a couple of years to replace my wife’s car—hopefully the prices will calm down by then.