, which tracks wholesale auction prices for used cars, rose 4.3 percent in February. Prices were up in December, the first month-to-month gain since May of 2022, and rose 2.5 percent in January. The February gain was the largest monthly increase since February of 2009.
Manheim’s wholesale index is thought to be a leading indicator for both new car prices and retail used car prices. The decline in the wholesale index last year anticipated a decline in used car prices measured by the Consumer Price Index months later. Used-car prices account for about 4.5 percent of the core Consumer Price Index, which excludes food and fuel prices. As a result, rising used car prices can push up the overall measure of inflation. In 2021, a sharp rise in used car prices was a leading indicator of more widespread inflation.
One reason used-car prices are sometimes a leading indicator for inflation is that they are highly flexible and responsive to market conditions. Other prices take longer to adjust to increases or decreases in demand. So when inflation is rising, it can show up first in the used car market. Despite the increases in the past three months, used car prices remain lower than they were a year ago. The Manheim Used Vehicle Value Index is down 7.0 percent from a year ago, which is much less of a decline than the 12.8 percent annual drop recorded a month earlier.
Good thing we had 'cash for clunkers' under the Obummer admin.
Don’t worry everyone Biden said the economy is great and he has a plan 😂
That's a lot of gas blowing out of the exhaust Breitfart!
The car market is undergoing a repeat of the Sub-Prime Mortgage nonsense of which we are all too familiar.
And they wonder why we drive 40 year old trucks!
Biden bringing down America through inflation and spending
It takes years to build chip plants. Why didn’t trump get on that? Don’t worry though Joe did and new plants will be coming online in the US to Make America Great Again!
Still? I thought the chip shortage had resolved.
Unless your trading in then the crooks tell you the price of your trade in is declining
Not to worry. With the recent bankruptcy of Carvana, many thousands of premium used cars will be dumped on the market to pay back its creditors. Patience, use car buyers.