Record prices for used cars and trucks were the biggest contributor to inflation last month, according to the government's Consumer Price Index report. Prices for used vehicles surged 7.3% just last month, following an even bigger 10% gain in April. Why are the prices of used vehicles skyrocketing?
In short, there are more people buying cars than there are cars in the market. New car trade-ins are usually the biggest source of used cars, but supply chain disruptions, especially a widespread of specialty semiconductors used by auto manufacturers, have limited availability of new vehicles—causing prices of scarce used vehicles to catapult higher. The Manheim Vehicle Value Index, a widely-followed industry yardstick shown in the chart, was described by industry observers as "shocking". (Chart from Manheim)
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Womack Investment Advisers, Inc.
WOMACK INVESTMENT ADVISERS, INC.
Oklahoma / Main Office: 1366 E. 15th Street - Edmond, OK 73013
California Office: 4660 La Jolla Village Dr., Ste. 100 - San Diego, CA 92122
Phone (405) 340-1717 - Toll Free (877) 340-1717
Website: www.womackadvisers.com
Womack Investment Advisers, Inc. (WIA) is a registered investment adviser whose principal office is located in Oklahoma. Womack Investment Advisers, Inc. is also registered in the State of California, the State of Illinois, the State of Indiana, and the State of Texas. WIA only transacts business in sates where it is properly registered, or excluded, or exempted from registration requirements.