Wholesale used-vehicle prices rose 0.14% month-over-month in September, according to a Cox Automotive announcement.
This gain brought the Manheim Used Vehicle Value Index to 139.9, a 3.7% increase year-over-year, and a record-high for the Index.
This record-high Index follows 11 weeks of consecutive used-vehicle price gains.
Although nearly all vehicle segments are realizing some sort of benefit from the past two month’s rising prices, lower-priced vehicle segments are seeing the biggest benefits from these rising prices, noted Cox Automotive.
Segments such as compact cars and mid-size cars are outperforming the overall market. Meanwhile, vans, utility vehicles, and pickups are underperforming the overall market.
“The strong wholesale prices we saw in the fall of 2017 were driven mostly by major hurricane activity, causing significant vehicle loss in Texas and Florida,” said Jonathan Smoke, chief economist for Cox Automotive. “This year, the abnormal rise in value seems to be mostly man-made, driven primarily by consumer demand, rising interest rates, and threats for tariffs.”
The forecast for the wholesale used-vehicle front remains positive for the remainder of the year. Values are expected to remain relatively strong as supply is beginning to dwindle and the mix of vehicles at auction shift.