The prices car dealers pay at used car auctions increased in the first half of September — bad news for used car shoppers. Wholesale price trends tend to become resale price trends after six to eight weeks.
Wholesale prices dropped dramatically through much of summer but have now been on the rise for more than a month.
The Manheim Used Vehicle Value Index tracks the prices dealers pay for used cars at auction. It is a product of Kelley Blue Book parent company, Cox Automotive.
The index rose 1.5% in just the first 15 days of September. It remains 3.5% lower than a year ago.
Shoppers have been paying less for used cars for several months. The average used car sold for $26,651 in August — 1.4% less than in July.
But analysts believe prices may be headed higher soon. Dealers ended August with a 43-day supply of cars to sell — 10 days lower than this time last year.
Automakers built about 8 million fewer cars during the pandemic. Used car inventories could remain low for years as those cars never find their way to the used market, keeping prices higher than Americans had grown accustomed to.
The story changes, however, based on what kind of vehicle you’re shopping for. In August, pickup trucks saw wholesale prices 1.4% higher than the month before. Compact car prices declined 9.4%.
