by Jon LeSage, editor, Used Car Market Reports
Here’s some market trends worth paying attention to from the latest Used Car Market Reports….
- 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.
- 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.
- Franchised dealers had a 4% gain, while independent dealers suffered a 7% decline with total used vehicle dealer sales declining 1% in September.
- 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.
- 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.
- 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.