A man buys a used car at a Toyota of Deerfield dealership in Deerfield Beach, Florida.
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DETROIT — Stronger-than-expected demand for used vehicles last month led to the biggest increase in wholesale value since late 2021, according to new data Tuesday from Cox Automotive.
Automotive data company Manheim Used Car Value Index fell 12.8% in January from inflation a year earlier but was up 2.5% from December. It was the biggest monthly increase since the 3.9% increase from October to May. 11 year 2021.
According to Cox, the larger-than-expected increase in an index that tracks the prices of used cars sold at wholesale auctions in the US was in part the result of unusually high demand.
Used car prices have increasingly become an attraction for investors and the Biden administration as a barometer to reduce inflation. Early last year, the administration blamed much of the rising inflation rate in the country on the used car market.
Manheim Used Vehicle Value Index posted a 15% decline last year when buyers stopped buying a used car due to record high prices.
Cox reported the average list price of a used car at $27,143 in December, the most recent data available, down nearly 4% from a year earlier. Retail prices to consumers traditionally vary with wholesale prices.
The research firm last month said the used car market had stabilized, like pre-pandemic levels, with inventories stabilizing and prices falling from record highs. It forecast wholesale price on the Manheim Used Vehicle Value Index by the end of 2023 decreased by 4.3% compared to December 2022.
Used car prices have surged since the start of the coronavirus pandemic, as the global health crisis combined with supply chain issues has made regular production of new vehicles less than adequate. work. That leads to a low supply of new cars and record high price in the context of resilient needs. Prices and the scarcity of inventory prompt consumers to buy used cars, which drives prices up as well.
