Anyone who has shopped for a used car in the past three years knows the sting.
Vehicles that should have been worth $12,000 were listed at $19,000, and dealers weren't budging.
That era is starting to crack, though not evenly and not everywhere.
Nationwide, the average used-vehicle listing price has slipped for several consecutive months, according to data tracked by Cox Automotive and other market researchers.
The declines are modest, often a few hundred dollars per unit, but they mark a real shift after a long stretch of record highs.
Wholesale auction prices, which tend to lead retail prices by a few weeks, have fallen even more.
The gap between what dealers pay at auction and what they charge you on the lot is where the story gets interesting.
Dealers who overpaid for inventory in 2022 and 2023 are now sitting on cars worth less than they financed.
Some are holding firm on sticker prices to avoid taking losses.
Others are quietly discounting to move metal before values drop further.
A wave of lease returns and softening demand has pushed used EV prices down faster than the overall market.
Second, full-size trucks and SUVs, which were the most inflated segment and now have the most room to fall.
Third, anything with more than 80,000 miles, where buyers get spooked and sellers get flexible.
What isn't falling much: reliable compact sedans and hybrids.
Fuel-efficient commuter cars remain in tight supply, and demand stays strong.
If you're hunting a used Corolla or Civic, expect to pay close to asking price.
Financing is the other half of the equation.
Used car loan rates have eased slightly from their peaks but remain elevated compared with 2021.
A higher rate can erase the savings from a lower sticker price.
Run the total cost, not just the monthly payment, before you sign.
Get preapproved by a credit union before you shop, since dealer financing often carries a markup.
Pull a vehicle history report and an independent inspection, because a car that sat for months may have battery or tire issues.
And don't be afraid to walk away; the balance of power has shifted slightly toward buyers for the first time in years.
If you have a trade-in, get offers from at least two online buyers like Carvana or CarMax before you negotiate at the dealership.
Those quotes give you a floor and a bargaining chip.
The worst of the used car market appears to be behind us, but the relief is uneven.
Patience, preapproval, and a willingness to consider an EV or a high-mileage truck will stretch your dollar further than loyalty to any one brand or lot.
Our take: this is a buyer's market in slow motion.
Prices are drifting down rather than crashing, so waiting a few months could save you money, but don't expect a dramatic plunge.
Final Thoughts
If you need a car now, focus on the segments with the most supply and negotiate like the leverage is finally yours, because for many shoppers, it is.