Used-vehicle prices in U.S. rise again in first half of Sept. after summer peak

Used-vehicle prices in the U.S. rose again in early September after slipping over the summer.

The Manheim U.S. Used Vehicle Value Index, a measure of pricing trends, increased 3.6 percent in the first half of September compared with a month earlier. That’s the first month-over-month increase since May. The index jumped 24.9 percent from the same period a year ago.

“The latest trends in the key indicators suggest wholesale used vehicle values will likely see further gains in the days ahead,” according to a Manheim report.

The surge in used car prices this year amid supply chain disruptions and a rebounding economy has been a major contributor to the jump in U.S. inflation. The August consumer price index report showed a decline in used car and truck prices, the first since February.

“Wholesale used vehicle prices rose rather significantly in the first half of September compared to the first half of August,” said Michelle Krebs, an executive analyst at Cox Automotive. “Dealers appear to be stocking up on used vehicles, which have seen supply stabilize somewhat, to have something to sell because new vehicle inventory remains low.”

Carmakers have said production of new vehicles this fall will continue to be constrained by the chip shortage and the spread of Covid-19 in Southeast Asia.

General Motors said Thursday it is cutting production at six North American assembly plants due to supply shortage.

The index is compiled by market researcher Cox Automotive Inc. The data take into account all U.S. sales through Cox’s Manheim automotive auctions that fall in to one of 20 different market classes, and are adjusted for seasonality and mileage.