Since the pandemic has disrupted new car production and sales, used car prices increased sharply. This pushed up inflation (“Used Cars” were up 51% annualized in December).
Here is some data on used vehicle wholesale prices. From Manheim Consulting today: Wholesale Prices Rise Further in First Half of January Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) increased 0.8% in the first 15 days of January compared to the month of December. This brought the Manheim Used Vehicle Value Index to 238.0, a 46.0% increase from January 2021. As was the case in each of the last three months, much of the reported increase was a result of the seasonal adjustment. The non-adjusted price was statistically unchanged from December.
Manheim Market Report (MMR) prices saw declines through the first two full weeks of January. The Three-Year-Old MMR Index, which represents the largest model year cohort at auction, experienced a 1.3% cumulative decline over the last two weeks.
emphasis added Click on graph for larger image.
This index from Manheim Consulting is based on all completed sales transactions at Manheim’s U.S. auctions.
According to the BLS, “Used cars and trucks in U.S. city average, all urban consumers, seasonally adjusted” is up 55% since the low in June 2020.