by Wolf Richter
Wolf Street
Totally Crazy Irrational Price Spike of Used Vehicles in Serious Unwind Mode.
Prices of used vehicles that were sold at auction in August fell by 4.0% from July, and are down by 12.5% from the peak in January, on a mix-, mileage-, and seasonally adjusted basis, according to the Used Vehicle Value Index by Manheim, the largest auction house in the US. But these wholesale prices, despite the declines, remain sky-high.
Dealers buy at these auctions to stock up on vehicles to sell to their retail customers. Their concerns about what retail customers might be willing to pay is reflected in these price declines.