NEW YORK -- Used vehicle prices shot to an all-time high last month, spurred by falling inventories, according to a closely watched barometer of the second-hand car business, aaccording to The Associated Press and reported by USA Today.

For those in the market for a used car, that's not necessarily bad news, said Tom Webb, chief economist at Manheim Consulting, which produces the index of the used car market. That's because the value of trade-in vehicles are fetching record prices, he said.

But those buying their first car or who aren't looking to trade in a vehicle will find themselves stuck paying the higher price, Webb said.

The Manheim Used Vehicle Value Index rose 6.9% in September to a record high of 118.5. The index is adjusted for vehicle mix and seasonality. A value of 100 represents used vehicle prices in January 1995.

The index reflects the wholesale, or trade-in, value of vehicles. But Webb said retail prices move "pretty much in lockstep" with wholesale values.

The main driver behind higher used car prices is falling wholesale vehicle supply, Webb said. This summer's wildly popular cash for clunkers program sent new vehicle sales soaring, taking dealers by surprise and clearing out inventories.