Despite intensifying declines in affordable used vehicles and tighter supply, the used-vehicle market is thriving, according to J.D. Power.
Profits on the used-vehicle side remain "very healthy" and trade-in equity is up in 2022, said Jonathan Banks, J.D. Power's vice president of vehicle valuations.
Banks, who spoke at the J.D. Power Auto Summit on Thursday, did note that younger buyers — especially the 16 to 25-year-olds known as Generation Z — are holding off on purchasing used vehicles because of the current market conditions. Availability of used vehicles in the more affordable $10,000 to $20,000 range has declined, he said.