Used vehicle prices have fallen about 12 per cent since May and are projected to decline by an additional 10 per cent over calendar 2023, Moody’s Analytics says, but those looking for a car are still paying more than 50 per cent more than just before the pandemic.

Moody’s Analytics senior economist Katrina Ell said used vehicle prices had declined again in December, marking the seventh straight month of small falls as the supply of new vehicles ramped up around the world, with a knock-on effect to the secondhand market.