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.
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.