Wholesale prices are remaining strong – up for fourth consecutive month in April. The Manheim Used Vehicle Value Index reached 124.9, a 4.8% increase from a year ago. While the market has been carefully watching for declining used vehicle values from surging supply, that time hasn’t arrived yet. Strong dealer demand in the competitive wholesale market has been setting a solid platform for prices.
Strong New Vehicle Demand and Reasonable Production Schedule Left Dealer Inventories in Better Shape:
Automakers may continue to enjoy higher transaction prices and flat incentive spending, which strengthens used values.
Retail Used Unit Sales by 7 Publicly Traded Dealer Groups Up More than 10% in Q1:
Net profits were at record levels, aided by operating efficiencies, F&I income, and CPO sales.
Strongest Wholesale Price Tier Was in $12K to $14K Price Range:
In 2013 and early 2014, strongest tier had been in $8K to $10K range.