Inflation, high interest rates on auto loans, and high dealership markups are certainly some factors that have slowed down demand. On top of that, shortages have become normal to potential buyers and that is keeping them away unless they really need a car.
But there are still people who need a car now, and the prices can be alarming. However, those with a car to sell might have an advantage in this current market. Dealerships are trying to get as much used inventory as they can, so you’ll probably never get a better price for your old car than now. The money you receive can then go toward a new-to-you car.