The wholesale prices car dealers pay for the used cars they later sell are still climbing. But their rate of climb has started to slow, suggesting that the startling rise in used car prices that has defined 2021 may be coming to an end.
The Manheim Used Vehicle Value index tracks the prices car dealers pay for used cars at auction, adjusted for normal seasonal fluctuations and the types of cars dealers buy. It is a product of Kelley Blue Book parent company Cox Automotive.
The Index rose by 3.9% in November – an increase, but not the 9.2% increase it saw one month before. The Index now sits 43.5% higher than it did one year ago.
Used car prices have soared by nearly 40% in 2021. The average used car sold for $26,971 in October — the most recent month for which figures are available.
But inventory levels began to recover in late fall. According to Cox Automotive estimates, total used vehicle sales were down 2% year-over-year in November. Combined with slowing wholesale price growth, the trends suggest that prices may begin to fall — or at least plateau — in early 2022.
