- The prices dealers pay for used cars at auction increased in the first 2 weeks of November — usually a sign that retail prices will increase soon
The price of the average used car increased modestly last month, and further inflation could be ahead.
The prices car dealers pay for used cars at auction increased in the first two weeks of November. Wholesale price trends typically become retail price trends within six to eight weeks.
The Manheim Used Vehicle Value Index tracks the prices car dealers pay to restock their lot at used car auctions. It’s published by Kelley Blue Book’s parent company, Cox Automotive, which also owns auction giant Manheim.
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The index increased by 1.1% in the first half of the month. But the news isn’t all bad for shoppers. It remains 0.2% lower than a year ago.
Shoppers may also have an easier time finding an affordable loan. “New and used loan rates are down about 30 basis points from October levels, helping consumers,” explains Cox Automotive Interim Chief Economist Jeremy Robb.
“We should start getting more economic data in the next week or so, assisting the Fed in efforts to see through the murky water a bit more clearly as they embark on their meeting in early December. Depreciation trends are known to level out in the last month of the year,” he adds.
