Used car prices could hike soon

(CNN, KYMA/KECY) - You might soon be paying more money for a used car.

Wholesale prices for used cars being sold at auction have risen sharply in the last few weeks.

According to Manheim, prices jumped 4% in just the last two weeks.

That's an unusually large increase in such a short time period and the jump also caught industry insiders by surprise.

A shortage of new car inventory helped drive both new and used car prices to record levels earlier last year.

The busy selling season for used cars is only months away and it's tied to when potential buyers get their tax refunds.

Now, dealers are scrambling to rebuild inventories, which is resulting in higher prices for used cars.