Manheim: Used Vehicle Value Index Jumps

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Not since Hur­ri­cane Sandy rocked the North­east has the Man­heim Used Vehi­cle Val­ue Index jumped this much in a sin­gle month.

Get the details from Man­heim chief econ­o­mist Tom Webb.

Not since Hur­ri­cane Sandy rocked the North­east has the Man­heim Used Vehi­cle Val­ue Index jumped this much in a sin­gle month.

Man­heim deter­mined whole­sale used vehi­cle prices (on a mix-, mileage-, and sea­son­al­ly adjust­ed basis) rose for the third con­sec­u­tive month in August, push­ing the index to 122.3. The read­ing rep­re­sents an increase of 1.3 per­cent from its year-ago lev­el.

“The August increase in whole­sale prices was the largest since the jump at the end of last year due to the impact of Hur­ri­cane Sandy,” Man­heim chief econ­o­mist Tom Webb said. “The dri­vers of today’s strong whole­sale pric­ing are more pos­i­tive — low inven­to­ries and high­er trans­ac­tion prices in the new vehi­cle mar­ket and strong prof­it oppor­tu­ni­ties in the retail used-vehi­cle mar­ket.”

As has been dis­cussed by numer­ous whole­sale price observers, Man­heim noticed a robust price increase for pick­ups in August. The com­pa­ny pin­point­ed the price gain for pick­ups at 3.8 per­cent, more than dou­ble the amount of the three vehi­cles seg­ments that post­ed price upticks com­bined.

The oth­er three vehi­cles seg­ments that increased in price dur­ing August accord­ing to Man­heim includ­ed SUVs and CUVs (up 1.2 per­cent), vans (up 0.1 per­cent) and lux­u­ry cars (up 0.1 per­cent).

Prices for mid­size cars bare­ly edged low­er as Man­heim indi­cat­ed their dipped by just 0.1 per­cent while prices for com­pacts dropped more at 0.8 per­cent.

“Mileage-adjust­ed prices for mid­size cars are basi­cal­ly flat rel­a­tive to a year ago but in recent months, their sea­son­al­ly adjust­ed prices have improved sig­nif­i­cant­ly — and, in fact, out­per­formed the over­all mar­ket,” Webb said.

“In the first half of this year, whole­sale pric­ing for mid­size cars was being hurt by the com­pet­i­tive offer­ings and price dis­count­ing in the new-vehi­cle mar­ket,” he con­tin­ued.

“In recent months, new-vehi­cle pric­ing in this seg­ment has been ris­ing since that is where sev­er­al inven­to­ry short­ages reside. As a result, sea­son­al­ly adjust­ed whole­sale prices for late-mod­el mid­size cars have risen,” Webb went on to say.

 

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