What’s Next for a Softening Used Vehicle Market?

Here’s a few thoughts on remar­ket­ing trends after read­ing the recent Man­heim Used Vehi­cle Val­ue Index and Galves Mar­ket Con­di­tions reports:

1. The mar­ket is return­ing to a lev­el of nor­mal­cy not seen for a while – it wasn’t as hard of a fall last month, but the decline in pric­ing has been in the works for at least four months.

2. We may start see­ing more of a sep­a­ra­tion between new vehi­cles and the price of same mod­el used vehi­cles. New vehi­cle deal­ers might have more of a chal­lenge to bat­tle com­pet­i­tive com­pa­ra­ble new mod­els that offer even sweet­er rebates and incen­tives to buy­ers.

3. Lat­er mod­el used cars are feel­ing the pinch more than old­er mod­els from the new vehi­cle incen­tive wars.

4. Pick­up trucks are still very strong, and that should last through the year unless gaso­line prices spike up.

5. It’s going to require hard­er work this year for used vehi­cles to be near­ly as prof­itable as they were the pre­vi­ous two years – cer­ti­fied pre-owned vehi­cle and tar­get­ing spe­cif­ic makes and mod­els based on region­al mar­ket con­di­tions should be more rel­e­vant this year.

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