Wholesale Supplies Up but Dealer Demand Strengthened Prices

Tom Webb
Chief Econ­o­mist

While whole­sale used vehi­cle prices soft­ened in May from the pre­vi­ous month, they were 4.7% high­er than a year ago. The Index dropped from 124.9 in April 2014 to 124.7 in May, though it was high­er than the 124.4 lev­el reached in March 2014. The con­tin­ued pric­ing strength reflects a strong retail mar­ket and only mod­est increas­es in whole­sale sup­plies.

Here’s the Man­heim Used Vehi­cle Val­ue Index report for May

Acces­si­ble Retail Financ­ing at Attrac­tive Terms Helps Deal­ers Stay Prof­itable:
Anoth­er fac­tor: retail used always com­pet­i­tive as fran­chised deal­ers increas­ing­ly focus on and improve this side of their busi­ness.

Fran­chised Deal­ers Up 4% and Inde­pen­dent Deal­ers Up 2.5% Year-to-Date:
Increase in used vehi­cle sales vol­ume means deal­ers on track to set record in 2014.

Rental Risk Unit Prices Down from April High but 5% over Year Ago:
Aver­age mileage for rental risk remained steady at just below 40K miles.


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