U.S. used-vehicle prices rise for 6th month

[rickaren]

U.S. used-vehicle prices rise for 6th month in row

Posted Wednesday, Jul 8, 2009, 11:05 am in Employee News

U.S. used-vehicle prices rose for the sixth straight month, as slumping sales of new cars and trucks reduce the supply, according to Manheim Consulting, Bloomberg reported.

The Manheim Used Vehicle Value Index, which measures wholesale prices at auctions, increased 5.8 percent in June from a year earlier, the Atlanta-based data provider said today, the news service reported. The biggest gains were for pickup trucks and sport-utility vehicles, after demand tumbled in mid-2008 as gasoline prices soared to a record high, Bloomberg said.

The index has risen each month this year, reaching 114.1 in June after ending last year at 98. The gain reflects “the significant reduction in potential supply available,” Manheim told the news service. Fewer used vehicles are available as trade-ins decline because of the drop in sales of new cars and trucks, the story said.

The rise in used-vehicle prices doesn’t indicate growing demand for new cars and trucks, Webb told Bloomberg. Increased prices for used autos often set the stage for stronger demand for new vehicles and, eventually, a boost in production, the story said. (Bloomberg)