Peak

Used car price rises not letting up as predicted, and the peak hasn’t come yet

Car for sale

Used cars aren’t the best deal at the moment.


Fotog/Getty Images

It remains a poor time to be in the market for a new car. Or a used car. According to an Automotive News report on the latest data from Cox Automotive on Monday, wholesale used car prices rose to record highs this past September. In turn, that means the prices dealers charge used car buyers also continue to rise.

Year-over-year, wholesale prices are up 27% compared to September 2020. From August, September saw prices climb 5.3%. The increases coincide with continued difficulties for automakers to build enough cars to meet people’s demands. The semiconductor chip shortage, according to the most recent estimates, may not start to stabilize until sometime next year. And only in the first half of 2023 may the industry enter an actual recovery phase. Without enough chips, carmakers will remain stuck as buyers won’t

Read More

Used-car prices are poised to peak in U.S. after pandemic surge

The record-breaking increase in used-car prices is probably coming to an end – and with it a key driver of the recent spike in U.S. inflation. The bellwether of the industry – the wholesale market where dealers buy and sell in bulk – already has topped out and prices of individual secondhand cars should follow in a matter of weeks, said Zo Rahim, industry analyst at Cox Automotive. Cox owns Manheim, the biggest U.S. auction house that sells millions of vehicles every year. Soaring prices for secondhand vehicles have helped push U.S. inflation to the highest in more than a decade. The cost of used cars and trucks climbed 10% in April, and another 7.3% in May, when they were responsible for one-third of the overall increase in consumer prices. All kinds of pandemic-driven shifts in supply and demand have contributed to the run-up. But there are signs that

Read More