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.
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.