The prices car dealers pay for the used cars they later sell set a new record in October. That likely means that the retail prices car shoppers pay will continue to rise.
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.
In October, the index rose 9.2%. Wholesale prices now sit 38.1% higher than they did just one year ago.
The prices dealers paid for every type of car rose during the month. But none rose as high as vans – a category that includes minivans. Van prices rose 49.5% year-over-year.
The price increases come despite sales slowing. Cox Automotive estimates that total used vehicle sales were down 10% year-over-year in October. High prices seem to have driven many shoppers out of the used car market entirely.
