Wholesale used vehicle prices rose 2.77% in September on a month-over-month basis, which drove Manheim’s Used Vehicle Value Index up 6.3% from a year ago to 134.9, marking five months of consecutive growth.
“Though wholesale market values continue to show strength as a result of growing retail demand most of this price strength can be attributed to the recovery following Hurricane Harvey and Hurricane Irma. Replacement demand combined with a reduction in available supply is causing wholesale inventories to tighten,” noted Manheim in its Used Vehicle Value Index report.
Segment-wise, Manheim saw all major market segment values go up. Luxury cars, pickups, and vans, however, saw the biggest gains. On a model-year basis, used vehicles less than 4 years old have sold the best at retail. Year-to-date, the sale of vehicles less than 4 years old has grown 5% compared to the same time last year.
Looking ahead, Manheim expects wholesale prices to continue rising due to hurricane recovery for the next two months at the very least.
Originally posted on Automotive Fleet