The Used Market Continues to Exhibit Great Strength
WHOLESALE MARKET UPDATE
USED VEHICLE PRICE INDEX
The used market continues to exhibit great strength as dealers and shoppers lean on used vehicles to help fill the gap from ongoing industry supply chain challenges that are constricting new vehicle production and ultimately sales. Back in late June and July, used prices cooled for seven consecutive weeks, which appeared to be the beginning of typical summer seasonal price declines as the market moves into the fall and the traditional new model year. However, prices gradually increased each week in August and September. As a result, in September, the J.D. Power Used Vehicle Price Index increased 11.2 points vs. August and closed out the month up 35% relative to the same nine-month period in 2020. Used prices are expected to remain very strong for the foreseeable future, with fluctuations up and down as the new market continues to work towards recovery.
SEGMENT PRICE PERFORMANCE
In September, month-end results at the segment level were generally positive. Mass market small and compact car prices were some of the strongest, increasing 6.9% and 6.2%, respectively. Large pickup and SUV prices weren’t quite as strong, but still positive increasing 3% and 2.6%, respectively. Large pickup prices have been some of the strongest in the industry throughout the past year, however, they are softening due to inventory on the new side of the market improving and putting pressure on used prices. On the premium side of the market, segment price movement was generally positive except for large premium cars which were down by a slight 1.2%.