Remarketing Roundup: What Manheim and KBB Are Predicting in Upcoming Used Vehicle Values

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by Jon LeSage, edi­tor, Used Car Mar­ket Reports

Here’s some mar­ket trends worth pay­ing atten­tion to from the lat­est Used Car Mar­ket Reports….

  1. Tom Webb and the Man­heim Con­sult­ing team report­ed that the Man­heim Used Vehi­cle Val­ue Index came in at 122.8 in Sep­tem­ber, an increase of 1.7% from its year-ago lev­el.
  2. September’s increase wasn’t sur­pris­ing giv­en new vehi­cle inven­to­ry was low with short­ages in some key mod­els; Man­heim expects that inven­to­ry to rise and high­er off-lease vol­ume, putting some down­ward pres­sure on used vehi­cle val­ue.
  3. Fran­chised deal­ers had a 4% gain, while inde­pen­dent deal­ers suf­fered a 7% decline with total used vehi­cle deal­er sales declin­ing 1% in Sep­tem­ber.
  4. Blue Book Mar­ket Report’s used car study saw auc­tion val­ues for 1–3 year old mod­els at the end of Q3 2013 remain at a three-year high at an aver­age of $17,085 – $280 above the 2012 aver­age.
  5. Kel­ley Blue Book expects val­ues to con­tin­ue on their down­ward tra­jec­to­ry through­out the remain­der of the year, while con­tin­u­ing to best pre­vi­ous year auc­tion val­ues.
  6. Tril­o­gy LLC has entered the used vehi­cle seg­ment at a very inter­est­ing time. The US mar­ket is see­ing more than 40 mil­lion used vehi­cle trans­ac­tions hap­pen­ing per year. A few years ago, a deal­er­ship might have had one used car man­ag­er han­dling most of the sales trans­ac­tions; late­ly that’s evolved into a team that includes inter­net sales and needs more resources and sup­port. They might be expect­ed to call a long list of leads, which can wear thin lat­er in the day and Tril­o­gy is offer­ing deal­ers a solu­tion.
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