Used car prices are dropping, but still remain higher than at the same time in 2021.

The average price of a used car was $28,012 in June, which was higher than the previous June, but slightly lower than the previous month, according to Kelley Blue Book.

Higher new car prices are part of the reason for this increase.

"A lot of people think, 'I want to get a new car. The prices are kind of high. I know what I'll do — a secret tactic: Buy a used car,'" said Brian Moody, executive editor at Kelley Blue Book. "Execpt everybody is thinking that so the prices kind of go up."

Popular vehicle types, such as full-sized pickup trucks and SUVs, command the highest prices. For the best chance at the best deal, buyers should look beyond these categories, Moody said.

"Steer off the beaten path," Moody said. "Look for something like a small hybrid, or a sedan like a Honda Accord, or maybe even a hatchback."

Moody does expect the market to soften, albiet gradually, noting that about 2.5 million used cars are currently for sale in the United States, while 1.1 million new cars are for sale.