Used vehicle prices jump ahead of spring selling season optimism
CNBC • • business
Key Points:
- The Manheim Used Vehicle Value Index rose 4% in February compared to a year earlier, reaching its highest level since September 2023, driven by dealers increasing inventories ahead of a strong spring selling season.
- Cox Automotive's chief economist, Jeremy Robb, attributed the price rise to solid demand and dealer optimism fueled by anticipated higher tax returns for consumers, despite economic and geopolitical concerns.
- Risks such as the war in Iran and rising gas prices could temporarily dampen consumer demand, particularly early in the month, but demand is expected to pick up through March.
- Used vehicle prices remain elevated compared to historical norms but have declined from pandemic-era record highs, with the average listing price in January at $25,533, down
