{"id":1842435,"date":"2023-02-10T12:05:39","date_gmt":"2023-02-10T17:05:39","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1842435"},"modified":"2023-02-10T12:10:49","modified_gmt":"2023-02-10T17:10:49","slug":"used-car-prices-pop-up-unexpectedly-suggesting-inflation-woes-not-over","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/used-car-prices-pop-up-unexpectedly-suggesting-inflation-woes-not-over\/","title":{"rendered":"Used Car Prices Pop Up Unexpectedly, Suggesting Inflation Woes Not Over"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fused-car-prices-pop-up-unexpectedly-suggesting-inflation-woes-not-over%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1842435&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/02\/AP21364680372568.jpg\" class=\"ff-og-image-inserted\" alt=\"image\"   style=\"display:none\"><\/div>\n<p>The unexpected jump in used car prices in January suggests that they are likely to rise further in the future.https:\/\/www.theepochtimes.com\/t-inflation&#8221;>inflation<\/a> Car buyers are still in trouble<\/p>\n<p>As the Federal Reserve continues to raise interest rates, the news may discredit optimistic predictions of a falling inflation rate.<\/p>\n<p>Used car prices have increasingly become a point of interest for investors and for the Biden administration as a\u00a0barometer for measuring and easing inflation.<\/p>\n<p>The White House blamed much of the rising inflation rates in the country in the first half of 2022\u00a0on the used vehicle market.<\/p>\n<h2>The Leading Inflation Indicator is Used Cars<\/h2>\n<p>The Consumer Price Index (CPI), which covers 4.5 percent of the survey, uses used car prices to determine the direction of change.<\/p>\n<p>The recent fall in inflation was largely caused by goods. Therefore, central-bank officials have shifted their attention to the service sector.<\/p>\n<p>The latest strong\u00a0jobs report has led many analysts to reassess their outlook on future\u00a0inflation.<\/p>\n<p>Fed policymakers are concerned that a tight labor market will continue to put upward pressure on wages, and inflation.<\/p>\n<p>The CPI shows that <a href=\"https:\/\/www.theepochtimes.com\/t-used-car-prices\">Prices for used cars<\/a> have fallen over the last six months, complementing the Fed\u2019s interest rate policy strategy.<\/p>\n<h2>Car Market remains volatile since Pandemic<\/h2>\n<p>Used vehicle prices have risen since the start of\u00a0the pandemic, as a combination of lockdowns, and supply chain issues caused the production of new vehicles to drop.<\/p>\n<p>The low supply of new vehicles\u00a0and record-high purchasing costs, along with resilient demand, pushed consumers into the used vehicle market, leading to a price increase in that sector.<\/p>\n<p>According to the Associated Press, January saw an unexpected rise in vehicle demand. This was responsible for the largest increase in wholesale vehicle costs since late 2021.\u00a0<a href=\"https:\/\/www.coxautoinc.com\/market-insights\/january-2023-muvvi\/\">Cox Automotive February 7.<\/a><\/p>\n<p>Meanwhile, the automotive data firm\u2019s\u00a0<a href=\"https:\/\/publish.manheim.com\/en\/services\/consulting\/used-vehicle-value-index.html\" target=\"_blank\" rel=\"noopener\">Manheim Used Vehicle Value Index<\/a>\u00a0The January inflation rate dropped 12.8 percent from the inflated levels of a year ago, but it rose 2.5 percent from December 2022.<\/p>\n<p>The Manheim index tracks the price of used vehicles sold at its U.S. wholesale auctions, which are\u00a0often a bellwether for the new-car market.<\/p>\n<p>According to Cox the larger-than-expected December 2022 rise was due in part to unseasonably strong demand. This was the largest monthly increase since the 3.9 per cent increase from November 2021 to October 2022.<\/p>\n<p>The index, however, posted a <a href=\"https:\/\/www.coxautoinc.com\/news\/manheim-forecast-used-vehicle-values-expected-to-normalize-in-2023-after-record-volatility\/\">Annual decline of nearly 15%<\/a>\u00a0In 2022, buyers resisted purchasing used vehicles because of record-high borrowing rates and rising prices.<\/p>\n<div>\n<p>Stephen Scherr, CEO of\u00a0Hertz, said the company witnessed a big jump in prices over the past five weeks, both at auctions and in used cars sold at retail.<\/p>\n<\/div>\n<p>\u201cThe snap back over the last four weeks has been more pronounced,\u201d Scherr stated in an interview that he noted\u00a0\u201cthere is clear stability and more of an uptick.\u201d<\/p>\n<h2>The End of the Year: Expected Fall in Wholesale Car Prices<\/h2>\n<p>Partly, the rebound in prices was due to consumers returning to market after prices fell from peak levels.<\/p>\n<p>According to Manheim, used-vehicle sales increased 16 percent over December 2022 and grew 5 percent from one year ago.<\/p>\n<p>Cox reported that the median listed price for a cigarette was a <a href=\"https:\/\/www.coxautoinc.com\/market-insights\/used-vehicle-inventory-december-2022\/\">Used vehicle cost $27,143<\/a> In December 2022, the rate of decline was almost 4 percent compared to a year ago.<\/p>\n<p>Cox stated that January&#8217;s used vehicle market was close to pre-pandemic levels. Inventory levels remained stable, and prices were dipping from record highs.<\/p>\n<p>Changes in wholesale prices are often reflected in retail prices.<\/p>\n<p>According to the Manheim Index, wholesale car prices will fall by 4.3 per cent by the end 2022.<\/p>\n<div>\n<p>The news might give consumers hope that dealers and carmakers will begin to discount vehicles, which are currently at their highest price in years.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The unexpected jump in used car prices in January suggests that they are likely to rise further in the future.https:\/\/www.theepochtimes.com\/t-inflation&#8221;>inflation Car buyers are still in trouble As the Federal Reserve continues to raise interest rates, the news may discredit optimistic predictions of a falling inflation rate. Used car prices have increasingly become a point of &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1842438,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[8171,5708,12758,4590,8821,8799,7495],"class_list":["post-1842435","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-car","tag-inflation","tag-pop","tag-prices","tag-suggesting","tag-unexpectedly","tag-woes"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1842435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1842435"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1842435\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1842438"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1842435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1842435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1842435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}