Used-Car Prices Hit Record High As Dealership Inventory At Historic Low

Wholesale used car prices rose to an all-time high in September as inventories at dealerships remain at historically low levels, given the strong demand for vehicles coupled with ongoing supply chain challenges.

The Manheim U.S. Used Vehicle Value Index increased 5.3% month-over-month in September, the most significant monthly rise since April. From a year ago, the index is up a whopping 27.1% to 204.8.

According to the Manheim report, surging used car prices have primarily been a function of global supply chain woes impacting new vehicle production, forcing consumers to buy on the second-hand market. Used car prices are expected to remain elevated through year-end.

In a separate report, Goldman Sachs told clients that inventories at dealers continued to fall from already historically low levels, and it will take time for inventory at dealers to return to normalized levels given the strong demand for vehicles coupled with continuing supply chain challenges (particularly with semiconductor chip shortages, but also due to shipping constraints on either side of the Pacific). – READ MORE