Used car prices hit record high on Manheim wholesale index
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Used car prices continue to rise as supplies of new cars remain low and buyers look to the second-hand market to satisfy demand.
The Manheim used car index hit 203 in May, which represents a 48.2% increase over last year. The baseline 100 year was 1995.
The overall average price for vehicles was $20,260 while light duty pickups hit $30,590.
Increases in wholesale prices typically lead retail by six to eight weeks, and Manheim had predicted that it would likely be July before the market started to normalize.
Retail used car supplies were at 38 days during the Month, which is below the historical 44 days average.
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Automakers have been struggling to make up production lost during the coronavirus lockdowns last year due to an ongoing semiconductor chip shortage that has seen incomplete vehicles being built and stored until the chips become available.
General Motors has even taken the step to remove several fuel efficiency features from its full-size trucks to stretch its supply of chips across more of its most profitable vehicles.
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