Strong Used Vehicle Pricing Reflects Dealer Efficiency

Tom Webb
Chief Econ­o­mist
Cox Auto­mo­tive

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.

Here’s the lat­est edi­tion of Man­heim Used Vehi­cle Val­ue Index

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.



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