Used Vehicle Prices Continue To Soar In April 2021, Hitting New Record
Manheim Used Vehicle Value Index reached its highest recorded value in early April, adding pressure to a growing inflation theme.
Used vehicle prices continued to soar through early April 2021. The Manheim Used Vehicle Value Index rose to a record high of 191.4, up 52% year-over-year and up 7% month-over-month.
The strong gain in April continues on the strength seen in March. Used vehicle prices are now 27% higher than the average value in 2020. The pace at which used vehicle prices are increasing is unprecedented — it is adding to the growing inflationary pressure that we see in other commodities.
Pickup trucks outperformed the overall market. Below is the annual price increase for each category:
- Overall industry: +52%
- Compact cars: +45%
- Midsize cars: +49%
- Luxury cars: +40%
- Pickup trucks: +74%
- SUV/CUV: +46%
- Vans: +45%
Automotive manufacturers note that semiconductors remain a concerning supply chain constraint for the production of new vehicles — this, in turn, is impacting the demand for used cars as consumers shift demand.