Wholesale used-vehicle prices made an unexpected month-over-month jump in January as demand increased. Retail prices typically follow wholesale trends.
Adjusted for mix, mileage and season, prices rose 2.5%, according to Cox Automotive’s Manheim Used Vehicle Value Index. It was the biggest month-over-month wholesale increase since November 2021. The unadjusted uptick was 1.5%. The index was down from the inflated levels seen a year earlier.
The index follows prices from wholesale auctions in the U.S.
Cox said consumers’ views on vehicle-buying conditions improved to the highest level since July 2021. Still, their sentiment on future conditions fell 6.7%, based on The Conference Board Consumer Confidence Index. Plans to buy a vehicle in the next six months were flat month-to-month and dropped slightly year-over-year.
The average listed used-vehicle price in December was $27,143.
Used-vehicle prices have been on the upswing since the pandemic narrowed new-vehicle inventories due to supply constraints’ effect on production, resulting in both new- and used-car price elevation as consumers moved from new models to used to save money.
Originally posted on Auto Dealer Today