Wholesale price strength continued in September. The Manheim Used Vehicle Value Index finished at 124.8, an increase of 2.8% from a year ago. Pricing was down before seasonal adjustment, but the past four months have seen strength and stability. Wholesale volume are up, but not high enough yet to impact pricing; new vehicle incentives are not yet at dangerous levels; and retail margins are down, but net profits are rising.
Concern that Dealers Over-allowed on Higher Number of Trade-ins Received:
So far this year, they haven’t; should be set up for October if trade-ins correctly valued.
Rental Risk Auction Volumes Eased in September, after 8 Months of Being High:
Average mileage slipped back below 45,000, but still up 8% from a year ago.
Auction Sales Saw Seasonal Declining in Pricing from August to September:
Values were up from year-ago levels for both commercial and dealer-consigned units.