This past week marked 15 consecutive weeks with the overall market increasing. Nine of those 15 consecutive weeks had increases of at least 1%.

With the global microchip shortage and other supply chain disruptors forcing OEMs to alter their new-car production, it is expected that this elevated market will continue throughout the summer. Remarketers are raising floors and holding firm with this knowledge that the supply is tight and will remain that way.

Used Retail Prices

With the proliferation of ‘no-haggle pricing’ for used-vehicle retailing, asking prices accurately measure trends in the retail space. Retail demand slowed down at the end of last year, thus resulting in declining retail asking prices over the last several weeks of 2020.

As demand rebounded in January, retail prices seemed to lag wholesale prices – retail asking prices continued to decline throughout January and remained stable in February. March had an accelerated growth in retail prices, but the rate of growth is still lower compared to the increases of wholesale prices.

In April, retail prices picked up speed as demand accelerated, fueled by stimulus payments, tax season, and shortages of new inventory. Currently, the prices are more than 13% above where we started the year.