Manheim Reports a Stable Market as Demand Stays Strong

Tom Webb, Chief Econ­o­mist, Man­heim Con­sult­ing:

Whole­sale pric­ing fin­ished 2013 down 1.9% from year-end lev­els of 2012, Man­heim said dur­ing its quar­ter­ly con­fer­ence call. Used vehi­cle prices in US declined slight­ly in the last quar­ter of 2013 but remained at his­tor­i­cal­ly high lev­els as con­sumer demand stayed strong. While declin­ing for the year, val­ues were well above lev­els of five years ago when prices start­ed to rise.

Here’s Manheim’s announce­ment of its Q4 whole­sale mar­ket find­ings

Used Vehi­cle Pur­chas­es Increased with Attrac­tive Financ­ing and Increased Employ­ment:
Restrained use of new vehi­cle incen­tives and increased empha­sis on CPOs helped by automak­ers and deal­ers helped.

Com­pact & Mid­size Cars Saw Price Declines and Lux­u­ry Cars Had Largest Decrease:
Pick­ups and vans both increased as hous­ing recov­ery con­tin­ued to dri­ve demand.

Whole­sale Prices Should Decline Slight­ly in Ear­ly 2014 but Remain at Healthy Lev­els:
Increase in new car sales and off-leased vehi­cles will increase sup­ply but con­sumer demand expect­ed to remain high.

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