CarGurus used Car Index:

According to the index, used car prices are up 2% in the last month, and have increased the last 3 months consecutively.

Used car prices are at the same level they were in October of 2021, before the Fed even started raising interest rates.

My thoughts: higher interest rates means higher financing cost for used cars. Higher financing costs means lower demand. Lower demand for used cars means lower prices. 😅

At least that is what I thought would happen with high interest rates. But I've been wrong on this so far.

Why are used car prices so sticky?