Manheim Q1 Report Sees Strong Used Vehicle Price Performance

Tom Webb
Chief Econ­o­mist
Man­heim Con­sult­ing

The first quar­ter saw an increase in whole­sale used vehi­cle prices – up 1.3% from a year ago and 1.6% from the fourth quar­ter of 2014, accord­ing to the Man­heim Used Vehi­cle Val­ue Index. Strong con­sumer demand is help­ing, as are a sta­ble job mar­ket and attrac­tive financ­ing. As for price seg­ment per­for­mance, the strongest demand for used vehi­cles was in the $15,000-$20,000 and $20,000-$25,000 pric­ing tiers; the weak­est con­tin­ued to be in the $9,000-$11,000 range.

Whole­sale Prices Remained Above Trend Lev­el Dur­ing First Quar­ter:
Strong prof­it oppor­tu­ni­ties in retail mar­ket help­ing with con­sumers con­tin­u­ing to see val­ue in pur­chas­ing used vehi­cles.

Com­pact Car Prices Weak­est Seg­ment in March and Down 5.2% from Year Ago:
Lux­u­ry car prices increased 1.3% over year ago, expect val­ues to bounce back in April.

New Vehi­cle Inven­to­ry Lev­els Should Help Used Vehi­cle Val­ues in April:
Will see in auc­tion lanes if deal­ers placed right mon­ey on num­ber of trade-ins they received in March.



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