The US Bureau of Labor Statistics will release September consumer price index data on October 13.
Why it matters: Global consumer uncertainty about inflation expectations has remained high the pressure keeps increasing.
In August’s CPI reading, used vehicle inflation fell 0.1%, to an unadjusted reading of 7.8% in the consumer price index for used cars and trucks.
Unfortunately, new car inflation continued to rise, rising 0.8% in August, accounting for a 10.1% rise in new car inflation over the last 12 months.
Also read: Not even the post office is immune to inflation. Get the Forever stamp before it’s too late.
What happened: The Manheim Index is becoming a leading indicator for both financial and economic analysts in monitoring price trends in the used car market, but is not intended to be a predictor of an individual dealership’s results.
The Manheim Used Vehicle Value Index is now 0.1% lower than a year ago as wholesale prices for used vehicles fell a seasonally adjusted 3% in September from August.
In September, the average daily sales conversion rate fell slightly to 49.2%, which was below normal as the sales conversion rate averaged 52.1% in September 2019, as reported by Manheim. The lower conversion rate indicates buyers had more bargaining power in September for this time of year.
Among Manheim’s selective market classes, compact cars posted the highest seasonally adjusted price increases of 5.9% year-on-year, while vans and pickups rose 0.8% year-on-year. While the remaining five major market segments, which include luxury, mid-size, SUV, CUV and sports cars, saw seasonally adjusted price declines of between 3.1% and 5.2%.
Additionally, Manheim has forecast used retail sales for September to be down 8% from August, which would result in used retail sales being down 10% year-on-year, calculated by utilizing a number of same-store dealerships, chosen to represent the country from…
