January Price Patterns More Seasonal than Starting Downturn

Tom Webb
Chief Econ­o­mist
Cox Auto­mo­tive

Vehi­cle sup­ply is increas­ing as much as was expect­ed, but whole­sale used vehi­cle val­ues were more affect­ed by sea­son­al pat­terns than over­sup­ply from off-lease and off-rental returns. Deal­ers con­tin­ued to see a soft­en­ing in used vehi­cle gross mar­gins that became clear in Q4 of last year. Deal­ers have been mod­er­at­ing their bid­ding to sta­bi­lize their risk-reward ratio at resale.

Review the lat­est Man­heim Used Vehi­cle Val­ue Index

Whole­sale Prices Fell to 125.2 on the Index – Vir­tu­al­ly Unchanged from Last Year:
That was only the sec­ond price decline in the past eight months.

Glob­al Finan­cial Mar­ket Tur­bu­lence Will Be Impact­ing Auto Loan Lenders:
If loan delin­quen­cies and loss sever­i­ties rise in Q1, it will be viewed with con­cern.

Com­pact Cars Remain Weak­est of Major Cat­e­gories with Y-O-Y Decline near 9%:
Pick­ups, both mid­size and full-size, remain the strongest seg­ment.

Tags:


0 Comments

    Leave a Reply

    Your email address will not be published. Required field are marked *.