According to the consumer price index Data provided by the US Bureau of Labor Statistics (BLS) on Thursday Used car and truck index was down 1.1% to hit 7.2% after falling 0.1% in August. This is the largest decline in the used car and truck index since March this year.
The Mannheim used car 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.
Image provided by Cox Automotive and Manheim
Last month, small cars posted the largest annual gain, up 5.9%, followed by trucks and vans, up 0.8%.
Demand for smaller, more fuel-efficient cars could increase as consumers move away from SUVs. At the same time, mid-size car costs fell slightly, but luxury car prices took a bigger hit, falling 4.8%..
According to the data, the used-car industry could face a tough time as a number of variables, including rising interest rates and gasoline prices, reduce demand.
ARK Invest CEO Cathie Wood states that used car prices and the residual value of all gas-powered cars are likely to fall drastically, leading to significant losses in the $1 trillion auto debt market.
Wood attributed the price drop to consumers shifting their preference towards electric vehicles on a Sunday tweet.
Regarding the sale, Cox Automotive stated that used sales volumes were down 8% from August to September and down 10% year-on-year. Revenue fell 18% compared to September last year, up slightly from August’s 19% decline in revenue.
Photo: acumen via Shutterstock
