Keyword: usedcars
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Wholesale used car prices dropped by 4.2 percent from May to June, marking the largest monthly decrease since the start of the COVID-19 pandemic, according to the Manheim Used Vehicle Value Index (MUVVI). The index, which is a measurement of wholesale prices of used vehicles, also saw a drop of 10.3 percent from a year ago. “The 4.2 percent drop is among the largest declines in MUVVI history and the largest decline since the start of the pandemic in April 2020 when the index plunged 11.4 percent,” Chris Frey, senior manager of economic and industry insights for Cox Automotive, said...
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People living in the east of Russia have once again been targeted in a television and radio hack, apparently suggesting they had been subject to a nuclear attack. It is the third time media stations in the country have broadcast hoax warnings in just over two weeks. Today’s message, however, included a chilling new detail – an instruction for those listening to ‘take potassium iodide pills’, which are typically used in radiation emergencies. ‘Seal the premises. Use gas masks of all types. In the absence of gas masks, use cotton-gauze bandages.’ Screens also flashed up with a black and yellow...
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Used car prices have soared, recording the largest February increase in 14 years, according to reports. The spike in prices comes as inflation continues to drive consumer prices. Wholesale used-vehicle prices increased 4.1 percent from January through the first half of this month, signifying the largest February increase since 2009’s full-month 4.4 percent gain, according to the mid-month Manheim Used Vehicle Value Index from Cox Automotive. This comes just a month after markets were hit with a massive rise in used car prices, according to the Manheim Used Vehicle Value Index. The used vehicle index rose to 234.0, down 7.3...
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Idaira Chavez is just the type of car buyer that BlackRock’s new social-impact fund might have had in mind when it bought a stake in Tricolor Auto Group. Tricolor gave Chavez, 21, a loan to buy a 2012 Kia Optima off one of its lots earlier this year. She needed the car to get to her job at a Dallas pet store after she moved to a nearby suburb. ... But Chavez says being a Tricolor customer hasn’t made her life any better: A few months after buying her car from the company in January, the vehicle stopped working and...
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With soaring borrowing costs, the Federal Reserve has slammed the brakes on the once-booming used car market. The latest data on wholesale used-vehicle prices show October's decline on a year-over-year basis was the worst since the financial crisis over a decade ago. The Manheim Used Vehicle Value Index for October declined to 200, or about 10.6%, the worst decline since December 2008 when the global economy was melting down (and the 5th largest decline ever)... The Fed's rapid pace of rate hikes this year is slowing demand, as Edmunds data showed the average annual percentage rate on used-car loans was...
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Thousands of cars are damaged or destroyed by floods every year, but don’t assume all those vehicles end up in a junkyard. Some are repaired and resold in other parts of the country without the buyer being aware of the car’s waterlogged history. In fact, Carfax says were 378,000 flooded cars were back on the roads in 2021, and Hurricane Ian is certain to see many more damaged cars added to the high-demand used-car market. (snip)
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High prices and rising interest rates are putting used cars out of reach for a growing number of car shoppers. That’s bad news for CarMax, the nation’s largest used car dealer. CarMax reported Thursday that its earnings plunged 54% as the number of cars it sold in the quarter fell 6.4% compared to a year ago. The company blamed “vehicle affordability challenges that stem from widespread inflationary pressures, as well as climbing interest rates and low consumer confidence.” Although higher prices lifted the company’s overall revenue, the results were well below forecasts from analysts surveyed by Refinitiv. That set off...
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Prepare for an exploding supply of used automobiles… And like most economic disruptions these days, it’ll be thanks to the pandemic.COVID-19 brought about never-imagined lifestyle changes. Families that used to live in crowded apartments and concrete jungles made the move to suburban areas with yards and trees. And trains, subways, and shuttle buses were no longer reliable forms of transportation.Everyone needed cars.This change in demand (along with global supply-chain issues) made cars a precious commodity. Prices nearly doubled as a result.But recent indicators show the car market’s strength is starting to fade. And for the first time in years, prices...
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It’s been a challenging year for consumers. And with the highest inflation in four decades, some are paring back spending on big-ticket items, such as used automobiles. After jumping 90%, since the start of the virus pandemic, used car prices are cooling as buyers balk due to affordability issues stemming from soaring interest rates. Outside of the COVID shock and Great Financial Crisis of 2008/09, the Manheim Used Vehicle Value Index, a wholesale tracker of used car prices, printed the most significant monthly decline in terms of rate of change averaged out over three months in April at 6.4%. It...
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U.S. companies has struggled with supply chain congestion, bottlenecks, and the inability to adequately re-stock certain items that roiled the automotive industry. As a result, new car production has been hindered as consumers panic bought used cars, sending prices sky-high. On Feb. 9, we outlined a major inflection point for the Manheim Used Vehicle Value Index, a wholesale tracker of used car prices, possibly topping as peak supply chain constraints had passed and more parts would be readily available for automakers to restart and or increase output for new vehicles. At the time, we said this could reverse used car...
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Photo: Honda Both the new and used car market is a hot mess right now, and will be for sometime. Just how hot of a mess are we talking? Well, a writer for The Verge managed to sell his 2014 Honda Fit to Carvana sight-unseen for $20,905—$90.20 more than he paid for it brand new off a dealer lot. That’s a mighty caliente market. How could such an old car possibly be worth more today than when it had 23 miles and still smelled like plastic? How could a company that buys such cars at such high prices before even...
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Another month, another record (see prior records: here & here). New data shows used car prices continued to soar in the first half of December, suggesting inflation has been anything but transitory. The Manheim Index, the most recognized wholesale used-vehicle price index by financial and economic analysts, reported that the wholesale used car index rose 3.1% in the first 15 days of December compared to November. The overall index has jumped a mindboggling 48.9% from December 2020.“On a year-over-year basis, all major market segments saw seasonally adjusted price gains through the first 15 days of December. Pickups had the smallest...
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The cost of driving in America is accelerating–and not just because gas prices are up 60 percent from last year. The prices of new cars and trucks jumped a seasonally adjusted 1.4 percent in October and another 1.2 percent in November, data from the Department of Labor’s Consumer Price Index showed Friday. Compared with a year ago, prices are up 11.1 percent. That’s the fastest annual pace of inflation for vehicles since 1975.
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The Labor Department reported Friday the U.S. consumer price index rose 0.8% in November, compared to October. The increase marks a 6.8% increase over the previous year, the department also reported, marking the highest annual inflation rate since June 1982. Wall Street expected the month-to-month index to reflect a 0.7% gain for November, according to CNBC. Under the Biden administration, the CPI increased 0.9% in October, compared to the previous month. The index report from the department's Bureau of Labor Statistics gauges inflation by measuring the cost of dozens of items from such everyday goods as gasoline and food to...
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Those holding off on purchasing a used car, expecting prices to come back down, might be in for a surprise. A new Cox Automotive report said used car prices may never return to pre-pandemic levels. Philip Nothard, insight and strategy director at Cox Automotive, said used car prices show no signs in reversing as there is no “tsunami of used stock” on the horizon and warned secondary markets had lost around 1.4mln vehicles. He said prices might stabilize in mid-2022 as the market reverts to some normalization but said a new benchmark for used vehicle values has been established and...
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JOSH Duggar made a startling "non-admission" when questioned about alleged child pornography on his work computer in 2019. In court on Wednesday, audio from an interview with Homeland Security agents conducted with Josh in 2019 was played. At the time, after being presented with evidence, Josh told arresting officers: "I’m not going to say anything that’s going to incriminate me. I’m not denying guilt. I’m not saying if I am guilty or not." In another audio recording played for the court, Josh was asked by an agent if he was aware of what peer-to-peer was, according to a Sun reporter...
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It turns out that all of the “doom and gloomers” that were warning that we would eventually experience nightmarish inflation were right after all. In particular, vehicle prices have become exceedingly painful in recent months. Due to a crippling global shortage of computer chips, production of new vehicles is way down, and a lot of that demand has shifted into the used vehicle market. Over the past year, used vehicle prices have escalated at a pace that we have never seen before in our entire history, and things reached a crescendo during the month of October. If you can believe...
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Reports show that wholesale used car prices climbed to an all-time high in September even though dealership inventories have historically low inventory given the high demand for second-hand cars in the supply chain. The Manheim U.S. Used Vehicle Value Index showed that the month-over-month in September increased by 5.3 percent in September, which is the highest rise since April. Over the last year, the index increased by 27.1 percent to 204.8.
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In the past month, a feud has broken out between the so-called “team transitory”, comprising mostly of pro-Fed, pro-Biden commentators, who urge the public to ignore the “transitory” hyperinflation that by now is painfully obvious to everyone (see today’s UMich report for the gruesome details), and not to blame either the Fed or the administration for the collapse in the dollar’s purchasing power. Then there are the realists who see a much more ominous trend in deglobalization – you know, the same trend that allowed inflation to decline along with interest rates since the early 1980s – and warn that...
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Junked-car auctioneer Copart, Inc., or simply Copart, reported earnings this week and said given the stellar growth in new and used car prices this year, wrecked car prices are getting a lot more expensive. On Thursday, Copart’s CEO Jeffrey Liaw told investors on an earnings call that strong used car prices are a driving force behind “the record average selling prices” for wrecked cars. Copart specializes in auctioning wrecked cars that insurers have totaled. The vehicles go to auction and are frequently bought by companies who part out vehicles. Selling prices for wrecked cars surged 20.7% in the most recent...
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