Used-Vehicle Prices Rise Again
February increase biggest gain for month since 2009; used retail sales fall.

The eight major vehicle segments experienced 'significant' month-over-month price increases.
IMAGE: Pixabay
Used-car prices, which had been trending downward from record highs, are now headed back in the other direction.
Cox Automotive data for February wholesale used-vehicle prices on a mix, mileage and seasonally adjusted basis show they jumped 4.3%, the biggest month-over-month increase in February in nearly 15 years and the third consecutive monthly bump. The non-seasonally adjusted increase was 3.7%.
That was down 7% year-over-year from historic highs achieved during pandemic-caused supply constraints that led to decreased production.
Increased prices, coupled with rising interest rates, don’t bode well for sales. In fact, February retail used-vehicle sales fell 5% month-over-month and 9% year-over-year.
The pressure interest rates bring to the automotive market shows no signs of easing, either, as Federal Reserve Chairman Jerome Powell advised in early March that rates will likely keep climbing because inflation deceleration has reversed.
The used-car price swells may reflect the broader economic conditions, as the Biden administration has considered them a measure of weakening inflation.
Used-vehicle prices rose during the pandemic along with those for new vehicles as consumers who’d normally buy new models switched to used to save money.
Cox's Manheim Used Vehicle Value Index, which tracks prices of used models sold at its U.S. wholesale auctions, rose to 234.5. Retail prices typically follow wholesale price fluctuations.
The average daily sales conversion rate increased in February to 64.3%, above normal for the time of year, said Cox, which interprets that to mean sellers had more pricing power than is typical for early in the year.
The eight major vehicle segments experienced “significant” month-over-month price increases in February, Cox said, gaining from 3.3% to 5.9%.
The trend may have been reflected on some level in the Conference Board Consumer Confidence Index, which fell about 3% during the month. The index showed that views of current conditions actually improved, though future expectations decreased 8.3%, and plans to buy a vehicle in the following six months fell to the lowest level since November 2021.
Originally posted on Auto Dealer Today
More Industry

RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Selling to Grow
The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.
Read More →
Recalled Vehicles Hit 5-Year High
Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.
Read More →
Auto Group Acquires Top-Performing Rooftop
Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.
Read More →
China as Pacesetter
Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.
Read More →
BMW Concept Car Makes Fuel to Burn
The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.
Read More →
South Carolina Auto Group Downsizes
Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.
Read More →