Used vehicle prices rising at an unseasonably strong rate

In America

Here's why used car prices are increasing

DETROIT — Consumers hoping for a deal this spring on a used car or truck might be out of luck, as wholesale used vehicle prices increased for a third consecutive month in February.

Cox Automotive on Tuesday reported wholesale used vehicle prices increased 4.3% in February from January — marking the largest increase between the two months since 2009.

Although the prices were down 7% from inflated levels a year earlier, they’re trending back toward record levels, according to Cox’s Manheim Used Vehicle Value Index, which tracks prices of used vehicles sold at its U.S. wholesale auctions.

The unseasonably strong increase is bad news for consumers hoping for a deal, as well as for the Biden administration, which has seen pre-owned vehicle prices as a barometer for easing inflation.

Federal Reserve Chairman Jerome Powell on Tuesday cautioned that interest rates are likely to head higher than central bank policymakers had expected, citing data that inflation has reversed the deceleration it showed in late 2022.

Driving Demand: Used car prices surge higher

Higher interest rates mean vehicles become less affordable for consumers, who have been dealing with record-high new and used vehicle prices for several years now.

Cox reports the average listed price of a used vehicle was $26,510 in January, the most recent data available, down from record highs last year of more than $28,000. Retail prices for consumers traditionally follow changes in wholesale prices.

Cox estimates that used vehicle retail sales declined 5% from January to February and were down 9% from a year earlier.

Used vehicle prices have been elevated since the start of the coronavirus pandemic, as the global health crisis, combined with supply chain issues, caused production of new vehicles to sporadically idle. That led to a low supply of new vehicles and record-high prices amid resilient demand. The costs and scarcity of inventory led consumers to buy used vehicles, increasing those prices as well.

Read More: Used vehicle prices rising at an unseasonably strong rate

Join Our Newsletter!

Love Daynight? We love to tell you about our new stuff. Subscribe to newsletter!

You may also read!

‘Look At The Evidence’: Karl Rove Drops Bad News For Trump Live On Fox News

Longtime Republican strategist Karl Rove delivered some bad news to Donald Trump and his supporters over the weekend.“Take


Calif. hiker who was missing in Santa Cruz mountains for 10 days drank a gallon of water out

A California hiker who was lost for 10 days while exploring the Santa Cruz Mountains drank a gallon


Leave a reply:

Your email address will not be published.

Mobile Sliding Menu

Slot Garansi

depo 25 bonus 25

depo 25 bonus 25