Used-vehicle prices experienced exceptional strength in October
OCTOBER 2021 WHOLESALE MARKET UPDATE
USED VEHICLE PRICE INDEX
Used-vehicle prices experienced exceptional strength in October and, as a result, the J.D. Power Used Vehicle Price Index increased 11.2 points vs. September. This was the first time in the last 25+ years that used prices increased in the month of October, and the first time that the index crossed the 200-point threshold, landing at a record-high 207.5.
Typically, used-vehicle prices cool in the fall. However, new market disruptions continue to bolster used values as both consumers and dealers alike lean on this side of the market to satisfy demand. In addition to all the ongoing challenges on the new side of the market, used vehicles remain in short supply. This has driven prices even higher as volume remains down nearly 30% compared with pre-pandemic levels at auctions across the country. Compared with the same period in 2020, used prices this year are, on average, 37% higher though October 2021—with no signs of softening. Used prices are expected to remain very strong for the next year, with fluctuations up and down as the new industry, specifically production and inventory, continues to work towards recovery.