Prices See First Increase after Four Month Decline

Tom Webb
Chief Econ­o­mist
Man­heim Con­sult­ing

Whole­sale used vehi­cle prices saw their first month-over-month increase right after a four-month decline. At 123.9 on the Man­heim Used Vehi­cle Val­ue Index, it was down 0.1% from a year ago; how­ev­er, whole­sale prices were stronger than expect­ed last month and for this year over­all. Sol­id retail mar­ket­ing, oper­at­ing effi­cien­cies, and good remar­ket­ing prac­tices are strength­en­ing the mar­ket. It does appear that with fur­ther accel­er­a­tion in whole­sale sup­plies, along with sea­son­al pat­terns, down­ward pres­sure will be put on pric­ing.

Check out the lat­est Man­heim Used Vehi­cle Val­ue Index report

Retail Sales Rose in April and May After Being Down in First Quar­ter:
CPO sales con­tin­ued record page – up 17.6% in Jun and 12.5% for first half of year.

Auc­tion Prices for Rental Risk Units Declined 6.5% Between March and June:
Old­er and rougher-con­di­tion vehi­cles being sold had much to do with the decline.

Pick­ups and Vans Were Only Seg­ments with Price Increas­es Year-Over-Year:
For pric­ing tiers in over­all mar­ket, $9K-$11K weak and every­thing above $15K strong.



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