The wholesale prices dealers pay for the used cars they later sell declined 2.1% in February from January.
The Manheim Used Vehicle Value Index tracks the prices car dealers pay for used cars at auction, adjusted to account for normal seasonal fluctuations. The index is a product of Kelley Blue Book parent company Cox Automotive.
The decline could foretell a slight decline in the prices buyers pay. The average price paid for a used car in America declined in January after a year of increases. But the Manheim index remains an astonishing 36.7% higher than it was one year ago.
And any price decrease might be short-lived. Spring, and tax return season, traditionally bring a surge in demand for used cars.
But consumer confidence, according to the Conference Board, declined 0.5% in February. Inflation, together with a spike in gas prices caused by Russia’s invasion of Ukraine, could further shake buying habits.
