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.
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.