Dec 8, 2021 - Economy & Business

New heights for old cars

Data: Manheim Used Vehicle Value Index (Cox Automotive). Chart: Axios Visual
Data: Manheim Used Vehicle Value Index (Cox Automotive). Chart: Axios Visual

At the risk of sounding like a broken record: Used car prices are still going up.

Driving the news: Wholesale vehicle prices, or what dealers pay, rose 3.9% in November, putting the year-over-year increase at 43.5%.

The big picture: Price growth in used vehicles, the poster child for supply chain disruption, is slowing — after a 9.2% surge in October.

  • "Wholesale prices appear to have peaked the week before Thanksgiving as weekly prices have declined slightly in each of the last 2 weeks," wrote Jonathan Smoke, chief economist at Cox Automotive, which compiles the Manheim vehicle index.

Yes, but: Retail price trends lag wholesale — and for now, retail prices continue to increase, Smoke said.

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