Used car prices look like they're about to drop, but how soon?
Wholesale prices down for the first time since December
{{#rendered}} {{/rendered}}
Used car prices may soon take a turn for the better after months of steep increases due to low inventories of pre-owned and new vehicles.
Average wholesale prices for used cars dropped by 1.3% in June, according to auto auction giant Manheim, marking the first decline since December.
Retail prices typically lag what the dealers pay by a month or two, so it may still be a few weeks before shoppers see significant relief.
{{#rendered}} {{/rendered}}
According to Manheim, the average auction price in June was $19,997, compared to $15,765 during the same month in 2020 and $14,016 in 2019.
Pickup prices remain particularly inflated and are 49.5% higher than they were last June.
Used cars have become so valuable in recent weeks that iseecars.com was able to identify 16 2019-2020 models that are selling for more than when they were new.
{{#rendered}} {{/rendered}}
CLICK HERE TO GET THE FOX NEWS APP
The issue has even become a concern for the Federal Reserve, as it keeps an eye on inflation.
Federal Reserve Chairman Jerome Powell at a press conference on June 16 attributed the spike in used vehicle prices to "a perfect storm of very strong demand and limited supply."
{{#rendered}} {{/rendered}}
He added at the time that he was "not sure" when prices would begin to reverse.
FOX Business' Jonathan Garber contributed to this report