Harsh Winter Didn’t Hurt Used Vehicle Values

Tom Webb
Chief Econ­o­mist
Man­heim Con­sult­ing

While weath­er con­di­tions were harsh in sec­tions of the US ear­li­er this year, used vehi­cle val­ues increased dur­ing Q1. The Man­heim Used Vehi­cle Val­ue Index increased 2.2% dur­ing the quar­ter and was 3.3% high­er than a year ago. Tax refunds in late March were up 3% over last year, giv­ing con­sumers more spend­ing options. Storm con­di­tions led to high­er insur­ance replace­ment demand – mean­ing rental car com­pa­nies kept their risk units longer to meet heavy demand in replace­ment and held off return­ing them for resale.

Here’s the Man­heim Con­sult­ing Q1 mar­ket report

Com­pact Cars Con­tin­ued to Be Weak in UC Mar­ket:
Val­ues were down 4.5% YOY as con­sumers shift­ed to mid­size cars and CUVs.

Mid­size Cars Were Pop­u­lar and Saw 4.5% Price Gain Since Last Year:
Lux­u­ry car prices fell 0.6% in March from pre­vi­ous year as more off-lease units returned.

SUV and CUV Prices Rose 3.6% in March Com­pared to Year Ago:
Dri­ven much by mid-size CUVs pro­vid­ing com­bi­na­tion of space, util­i­ty, and fuel effi­cien­cy.

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