Prices Continued Dropping, but Returning to Historic Trend Levels

Tom Webb
Chief Econ­o­mist
Man­heim

August saw 0.7% decline in whole­sale prices, 4th con­sec­u­tive month­ly decline. The Index came in at 121.8, down 0.4% from a year ago. Man­heim sees whole­sale pric­ing trend return­ing to trend lev­els for entire series back to 1995. That took place after an extend­ed peri­od of excep­tion­al­ly strong prices. Increased whole­sale sup­plies and mod­er­at­ing retail demand are also play­ing their part.

Here’s the Man­heim Used Vehi­cle Val­ue Index for August

Retail Used Unit Sales by Deal­ers Declined for 3rd Con­sec­u­tive Month in August:
Deal­ers are report­ing that turn rates are good and net mar­gins are strong.

Rental Risk Units at Auc­tion Saw Prices Decline for 4th Con­sec­u­tive Month:
New vehi­cle sales into rental up 10% in August; increased flow back into whole­sale is inevitable.

Pick­ups and Vans Only Major Mar­ket Class­es up Year-Over-Year:
Lux­u­ry cars con­tin­ued hav­ing largest decline, but pace of decline wasn’t out of line with over­all mar­ket.

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