Used Car Prices Decline Amid Rising Fuel Costs
Used vehicle prices are expected to fall more than previously anticipated this year due to high gas prices and inflationary pressures affecting consumer spending. Cox Automotive revised its forecast for the Manheim Used Vehicle Value Index from a projected increase of 2% to just 0.2%. The index declined by 0.6% in September, marking the first monthly drop since early last year. The shift reflects broader economic challenges including rising diesel prices and increasing interest rates, which are impacting both businesses and consumers. Wholesale used-vehicle prices fell 1.2% year-over-year in September and continued to decline from August as depreciation accelerated during Q3. Meanwhile, demand for electric vehicles (EVs) and fuel-efficient models is growing, while large trucks and SUVs underperformed. Cox Automotive's chief economist noted that the first half of the year saw more appreciation than usual despite higher fuel costs, but ongoing global conflicts are now amplifying economic concerns.
Topics: economic impact gas prices inflation used vehicle prices