ATLANTA -

Prices are strengthening in the lanes, as it seems dealers are paying more for vehicles with higher mileage this year, according to Manheim’s Tom Webb.

The Manheim chief economist explained in a post to his blog on Monday that “an increase in average mileage for vehicles within a given tier means that prices are strengthening since it implies that dealers are willing to spend the same amount of money for a vehicle with higher mileage.”

All broad price tiers Webb analyzed showed an increase in mileage, with the biggest increase in average mileage (or pricing strength) occurring for vehicles in the $8,000 to $11,000 range. 

“Simply put, if you paid $9,500 for a vehicle at auction in 2010, you got, on average, one with 58,500 miles. This year, that same $9,500 got you a vehicle 78,700 miles on the odometer,” Webb further explained. 

Unfortunately, dealers seem to be getting less car for their money.

Webb also explained, “When there have been large movements in auction volumes and pricing (like between 2010 and 2012), you find individual price tiers where there has been big change in available supply and average mileage.

“And, naturally, the line is downward sloping,” he added, referring to a chart of this data in his blog. “In periods of more stable auction volumes and pricing (like between 2011 and 2012), the slope is less steep and the relationship less strong.”

To see the full blog post and included charts, see here.