Specifically, the index stood at 118.1 in February, 2010, up from 117.6 in January, and 105.5 from February last year.

Tom Webb, Manheim’s chief economist, said that fewer sales of new cars and the trade-ins associated with them have helped contain used-car inventories. At the same time that new car sales have continued to be low, independent auto dealers sold 561,431 used vehicles in February,2010, an increase of nearly nine percent over February, 2009, web added, citing data from CNW Marketing Research.

In addition to independent sales, there were 584,982 used vehicles sold by franchised dealers last month, though this number is roughly three percent lower than it was in February, 2009.

According to Webb, the biggest threat to used-vehicle values in the immediate future is the increase in new-car incentives being offered by various automakers (likely a strategy to counter the incentives Toyota is offering). Such incentives typically reduce used-car values, especially late models.

“A lot depends on how aggressive the incentives get; 0 percent financing — it will depend on how far down the credit scale” automakers are willing to go, Webb told the press. He also said that Toyota’s residual values for recalled models have weakened as compared to the rest of the market, which isn’t surprising considering the publicity attached to the recall, and the sales suspension. He added, however, that Toyota’s prices were underperforming compared with the company’s history, which was due to lease programs in place before the recall, and because of lenders reducing loan amounts to stay withing strict guidebook predictions.

The practical upshot of all this, says web, is that, “We expect part of the recent decline will be reversed.”

The Manheim index began in January 1995 at 100 and is adjusted for model mix, mileage and time of year.