February saw its fastest decline in wholesale used vehicle values in more than three years. The Manheim Used Vehicle Value Index came in at 123.3, a 1.4% decline from a year ago. The Index had been above its long-term trendline for 66 of the past 72 months, and the past month saw more of a return to that trendline. Market adjustments may be modest and supportive of retail financing for the used vehicle market in the near term.
Tax Refunds Had Been Down Due Primarily to IRS Computer Outage:
By late February, tax refunds had returned to normal for car purchases.
CPO Sales Rose 7% in February with Year-to-Date Gain of 2.5%:
Total used vehicle sales up 8% in January with more modest rise in February.
Luxury Cars Outperformed Overall Market but Y-O-Y Were 2nd Weakest Segment:
Values for compact cars continued to fall, both in recent months and over past year.