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.