By Stephen Markley on October 9, 2009
As we wrote in September, low inventories led to an increase in used-car prices. Much of this is due to the Cash for Clunkers program, which sapped new-car inventories and forced dealers to scrap and recycle vehicles that might normally be trade-ins. The higher prices were also influenced by fewer vehicles from rental car companies landing in the used market and a summer slowdown at many automaker factories, according to Manheim Consulting.
While higher prices are no good if you’re shopping for a used car, it does mean that the trade-in value of your used car has also increased.
The Manheim Index rose 6.9% in September to 118.5, which is a record high. The index comprises the wholesale or trade-in value of vehicles and has a baseline of 100, which represents used-car prices in January 1995.
The consulting firm also predicted that used-car prices have peaked. With the end of Cash for Clunkers, used-car prices should begin to creep back down.
Used Car Prices Reach Record High in September (Auto Loan Daily)