Higher transaction prices are “just taking some people out of the market,” Penske said.

In the U.S., vehicles that once sold at CarShop’s preferred price point of $20,000 became more costly to acquire, meaning their price tags had to move to $30,000 territory, Penske said. It considered lower-value vehicles — those between $8,000 and $12,000 — but decided those are wholesale vehicles, not ones to retail.

Sonic President Jeff Dyke said late last month that the retailer is seeing demand for vehicles up to 8 years old. It started to include such older vehicles in EchoPark’s inventory earlier this year after having difficulty securing 1- to 4-year-old vehicles.

Demand now has dropped for “a $640 monthly payment for pre-owned, and that’s what you’re getting when you’re selling a 1- to 4-year-old car right now,” Dyke said.

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High Prices Are Now Taking Some Consumers Out Of The Used Car Market

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