Used-Car Prices Jump by Most in Half-Century, Boost Price Index
Used-Car Prices Jump by Most in Half-Century, Boost Price Index
(Bloomberg) -- Used-car prices surged in September by the greatest amount in a half-century, accounting for most of the increase in the government’s latest monthly consumer-price index.
The 6.7% jump in seasonally adjusted prices of used vehicles is the largest since February 1969 and follows gains of 5.4% in August and 2.3% in July.
Demand for used cars and trucks has been climbing ever since the coronavirus outbreak temporarily shuttered U.S. auto plants, constricting supplies of new models. Used-vehicle prices also have been boosted by some automakers’ abandonment of entry-level vehicles and a pandemic-induced shift from public transport and ride-sharing.
Soaring sticker prices for new cars and trucks also may be encouraging recession-hit shoppers to choose pre-owned models. Average transaction prices for new vehicles in the third quarter climbed to $39,303 -- up more than $2,000 from a year ago, according to Edmunds.com.
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