Prices for Used Automobiles (AKA Cars They Didn’t Want Any More) Show Signs of Price Easing
According to the Manheim Used Vehicle Value Index, used car prices dropped a little in September from August, though are still relatively high. The index peaked at 127.8 in May, and now stands at 122.9. In a separate report, ADESA Auctions claims the average used vehicle price in September was $9,742, a 1.4% decline from August. Large SUVs averaged $12,584 per, up 2.5% from August, but down 10% from September of last year. ADESA says $4 gasoline is the culprit for lower prices.
As a consumer, I’d trust the actual prices listed from ADESA rather than the clandestine Manheim Index for buying decisions. “Wait…honey, did you say the Manheim Index just dropped to 120?!?!? As in a 120, adjusted for vehicle mileage, model mix and time of year, from the inaugural Manheim reading of 100 from January 1995? Then we must get to the dealer! And now, before the index jumps to 121!”
If this sounds like something that wouldn’t happen, that’s because it wouldn’t. Go by the actual data, folks.
[photo by flickr user bcostin]