Manheim Consulting Still Confident in Used Vehicle Market Strength

Tom Webb
Chief Econ­o­mist
Man­heim Con­sult­ing

Whole­sale prices saw their third con­sec­u­tive month­ly decline, down 0.2% in April from March. The Index had a 0.6% decline from one year pri­or. Man­heim Con­sult­ing says it would be inac­cu­rate to state that whole­sale pric­ing is weak; val­ues have been ele­vat­ed and have remained in a rel­a­tive­ly nar­row range for more than four years. High­er new vehi­cle trans­ac­tion prices and dis­ci­plined mar­ket­ing have been sup­port­ing resid­u­als; and while whole­sale sup­plies are increas­ing, they’re not yet out­side of his­toric norms.

Here’s the Man­heim Used Vehi­cle Val­ue Index for April

Mid­size Cars Had Price Uptick, but Remain One of Weak­er Seg­ments in Past Year:
Pick­ups, vans, and large SUVs con­tin­ued to be the sig­nif­i­cant price out­per­form­ers.

Fleet Deliv­er­ies Saw Increase in New Vehi­cle Sales – Up 11.9% in April:
Pace should slow, and impact on resid­u­als won’t be seen in mar­ket until 2016.

Used Retail Remained Sol­id as Report­ed by 7 Pub­licly Trad­ed Deal­er Groups:
The groups had 6.7% increase in same-store used units sold, 23rd con­sec­u­tive quar­ter­ly increase in unit vol­umes.


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