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Previously Owned Vehicle Prices Are Settling Down

Previously Owned Vehicles

As auto manufactures are cranking up their factories, previously owned vehicles are beginning to drop. Not to mention Tesla have started production at the Austin facility.

High used car prices are a post-COVID fact of life — but a key data point offers some hope, Matt writes.

Why it matters: An unprecedented surge in used vehicle prices was an early and essential driver of post-pandemic inflation.

What’s happening: The Manheim Used Vehicle Value Index, a gauge of wholesale market prices for used vehicles, dropped for its second straight month.

Wholesale prices for used vehicles — Manheim adjusts for age, mileage and other attributes — are now 5.4% lower than their January peak of $21,754.

Typically, Manheim’s prices, which reflect sales to auto dealers, are a leading indicator of the prices consumers see at the lot a couple of months later.

The big question: Whether the recent dip proves short-lived, given the fresh supply chain snarls set off by the war in Ukraine and China’s most recent round of lockdowns.