On CBT News, host Jim Fitzpatrick is joined by Zo Rahim, manager of Economic and Industry Insights at Cox Automotive. Used vehicle pricing has increased significantly, so on today’s show, Rahim reveals what’s behind the increase and what dealers can do.
The mid-month Manheim Used Vehicle Value Index was recently published and shows about a 50% increase over last year and hit a record high. Rahim begins the conversation by explaining what exactly is index measuring. Rahim says index measuring is what dealers are paying for inventory in the wholesale market. He continues on to say, people have to look past the index and look at the month-to-month and year-to-year comparison. With vehicles being sold at an all-time high, he believes the pricing in the wholesale market is incredibly strong because it’s driven by consumer demand in the new and used vehicle retail market.