Used Car Market Reports Review: What’s Up with Softening Prices?

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by Jon LeSage, edi­tor of Used Car Mar­ket Reports

When I take anoth­er look at the con­tent in this week’s Used Car Mar­ket Reports, a few ideas pop out…..

  1. We’ve been hear­ing about soft­en­ing used car prices in whole­sale and retail for a few months now, but when you look at the big pic­ture, it’s still a very strong mar­ket.
  2. For the month of August, Art Spinel­la and the CNW Research team see the sales vol­ume go up and that deal­ers are turn­ing inven­to­ry quick­er.
  3. Prices are down for fran­chised and inde­pen­dent deal­ers, but they seem to be mak­ing it up in sales vol­ume.
  4. Tom Kon­tos says that prices con­tin­ued to soft­en in July, but a bit less than in June.
  5. While prices were down 1.3% in July com­pared to June – and were the same per­cent­age down com­pared to one year ago – the price blow has been cush­ioned by retail demand, Kon­tos said.
  6. The sup­ply of used cars has been grow­ing and that can soft­en prices. But take a look at the Used Vehi­cle Financ­ing August 2013 chart for this week. It’s ref­er­enc­ing this month’s CNW Research report with days’ sup­ply, inven­to­ry turns, pric­ing, and floor­ing. It’s show­ing a lot sta­bil­i­ty in the used vehi­cle mar­ket.
  7. Take a look at the lat­est Man­heim Used Vehi­cle Val­ue Index. Prices have been soft­en­ing, and mov­ing up and down, con­sis­tent­ly since ear­ly 2011 – but that was right after hit­ting an astro­nom­i­cal peak – the largest by far since the Man­heim Index start­ed up in Jan­u­ary 1995.
  8. All things in per­spec­tive, the used vehi­cle mar­ket appears to be healthy. It cer­tain­ly helps to see the whole­sale and retail mar­kets stay­ing strong and deal­ing well with the chang­ing remar­ket­ing land­scape.

 

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