Most analyts were expecting prices to peak and head lower beginning in June, but the Manheim Used Vehicle Value Index shows that prices started heading down in April. Used cars have commanded higher prices over the last couple of years due to limited inventory and high gas prices, which boosts demand for fuel-efficient vehicles.
If you're shopping for a new car, now's a good time to consider selling your trade-in while used car prices are at their peak. If you're looking to buy a used car, prices usually hit bottom between December and January.
I don't expect used car prices to head too much lower since there's still a lot of demand, but timing your purchase towards the end of the year might save you a few hundred dollars.