The Manheim U.S. Used Vehicle Value Index(LINK to Report) jumped 9.2% month-over-month in October. This brought the index to 223.7 (a new record high). From a year ago, the index is up a whopping 38.1% from a year ago.
“Some of the monthly increase is a result of the seasonal adjustment, as October typically sees above-average vehicle depreciation and therefore used price declines,” Manheim wrote in the report.
However, it added, “this October was the first October in the history of the Manheim Index data, which dates to 1997, to see a non-seasonally adjusted price increase in October. The non-adjusted price increase in October was 5.4%.”
The used car market continues to march higher after the index stalled over the summer. Ford’s CFO John Lawler warned earlier this month that supply constraints could continue into 2022 and said, “we’ll be dealing with [supply chain issues] for a while.” This means used car prices might rise even further through year-end, Zero Hedge pointed out