Wholesale Still Strong Thanks to Dealer Demand

Tom Webb
Chief Econ­o­mist
Man­heim Con­sult­ing

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.

Read the lat­est Man­heim Used Vehi­cle Val­ue Index report

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.

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