November was a big month for the U.S., with the Northeast recovering from Hurricane Sandy and President Barack Obama being elected for a second term. And although there is still uncertainty for the future, the economy continues to move upward — right along with used-car prices, according to data from RVI Group.

In the company’s latest Risk Outlook report, RVI said used-car prices saw a monthly increase of 2 percent in November, and are up 4.4 percent year-over-year (for two- to five-year-old vehicles on a seasonally adjusted basis).

Real used-car prices (after adjusting for MSRP) showed an increase of 1.9 percent from October and are up 2.2 percent from last November, officials added.

One segment, in particular, has outperformed the market average over the past 12 months, RVI noted.

Used luxury small sedan prices have soared, but are expected to decrease from current levels in 2013.

“Competition in the segment is expected to begin increasing in 2016, showing little change until then. Used-vehicle supply will decline through 2015 and then increase through 2017,” the report reads.

And the overall trend of rising used prices is connected to increasingly tight inventory in the lanes, according to RVI.

“Our auction supply index declined in November and shows a 19.5-percent decline so far in 2012 (on an annual basis), which correlates with an increase in used-car prices in 2012 when compared to 2011,” officials said.

But dealers shouldn’t expect this price trend to continue into the new year and beyond, RVI officials warn.

“Used-car prices will face downward pressures through 2017. In 2013, new-car competition is expected to increase (i.e. more vehicles will have less total market share amongst their segments) although used-car supply will remain low,” RVI said.  “Beginning in 2014, used-car prices will soften due to lower new car prices, higher incentives, and increasing used-vehicle supply.”

SAAR Continues to Increase

Moving along to the new-car market, RVI said that new-vehicle sales increased in November to a 15.5 million SAAR.

This past month, new-vehicle sales increased by 14.5 percent year-over-year, and increased 8.7 percent from October.

This spike could be a direct result of increased demand for new vehicles in the wake of Hurricane Sandy, officials explained.

As for new-car prices, these rose by 1 percent year-over-year, but fell 0.1 percent when compared to the prior month.

The company also noted that many of the predictions in its report are dependent on the current U.S. economic situation.

“We would like to keep in mind that while our forecasts are based on relatively stable conditions in the future, the outcome of the Fiscal Cliff situation in the US could have much bearing on the near and long term future of the US and global economy,” RVI officials concluded.