As predicted, it’s happening. Used car prices are coming down. It may be partially due to the fear of an impending economic crisis but I believe the problem is more micro than that.

I’ve been watching the market for a while and there are many cars sitting at the stealer(dealer)ship for months. A lot of people are selling their cars either because they want to make a quick buck or because they got an impressive overtrade for a new VW or BMW. Whatever the case is, the used vehicle population is only growing.

Right now there’s 22,283 used passenger cars on the market in sgCarMart. There’s currently about 600,000 passenger cars on the road and that makes up nearly 4% of the car population. Based on COE current quota allocations, this is about a years’ supply of vehicle for the entire nation. If the average vehicle depreciates about $7,000, the entire used car market stands to lose a total of $13m every month.

Let’s check back in 1-2 months and see how this vehicle population has changed.