The Index came in at 125.3 for October, up 2.9% from previous year. That reflects higher new vehicle transaction prices and a high-performance retail used vehicle environment. Dealer efficiency is being passed on to consumers and enabling dealers to bid up prices in wholesale market. SAAR is predicted at 17.3M for this year, which will likely have little effect on used values. Next spring may see a smaller bounce of incentive activity increases.
Total Used Vehicle Sales Expected to Approach 40M for this Year:
Churn driven by soaring new vehicle sales, but growing CPO sales helps net profit.
Compact Cars Remain Weakest Segment in Recent Months and Over Past Year:
Luxury cars did well in October, but off-lease volume should bring it down next two months.
Relative Pricing Strength by Price Tier Consistent for All Price Points in October:
Unlike most months, there was no relationship between pricing and auction volumes for various price tiers.