Analysts expect Carvana to try to return to growth — albeit more carefully than in years past — in 2024.

"I do think the worst of the used-vehicle market is upon us," Cox Automotive Chief Economist Jonathan Smoke said. "I am optimistic that every month later this year will actually create strength in the used-vehicle market."

The announcement sparked a rally for Carvana shares on Wall Street on Thursday. Shares skyrocketed 56 percent.

Wholesale used-vehicle prices slid in May, the second month in a row they've fallen after appreciating to start the year.

Caution is the word on the used-vehicle side. Though demand was healthy through the 2023 spring selling season, gone is the level it was at in 2021.

Cox Automotive's Manheim Used Vehicle Value Index rose 1.5% in March from February.

Last year, sales of certified vehicles fell 9.4 percent to 2.49 million, according to figures from the Automotive News Research & Data Center. It was the lowest annual volume since 2014, when 2.34 million certified sales were recorded.

Wholesale used-vehicle prices ticked up in December to cap off a year in which there were several consecutive monthly declines.

Cox Automotive reported prices were 0.1 percent lower in September than the same time last year when the index stood at 204.8. It's the first time since May 2020 wholesale values declined year-over-year.

Cox Automotive said wholesale prices declined 4 percent compared with July.