Wholesale Used Vehicle Prices Dip for Fourth Consecutive Month

Tom Webb
Chief Econ­o­mist
Man­heim Con­sult­ing

Whole­sale prices declined for fourth con­sec­u­tive month in May. The Man­heim Used Vehi­cle Val­ue Index fin­ished the month at 123.8, which rep­re­sent­ed a decline of 0.7% from a year ago. Look­ing at 20-plus year his­to­ry of Index showed that pric­ing over the past five years has been ele­vat­ed and sta­ble. Even with recent price declines, the Index is only 3.1% low­er than the peak reached in May 2011.

Man­heim Used Vehi­cle Val­ue Index for May 2015

Encour­ag­ing for Val­ues that New Vehi­cle Trans­ac­tion Prices Con­tin­ue to Rise:
Incen­tive spend­ing is flat and new vehi­cle inven­to­ry lev­els are at a nor­mal lev­el.

Used Vehi­cle Retail Sales Rose 5% in April, After Being Down in First Quar­ter:
Con­ver­sa­tions with deal­ers sug­gest turn­around con­tin­ued in May, with CPO sales boost­ing it.

For Pric­ing Tiers, Vehi­cles Sold in $9,000 to $11,000 Range Showed Weak­ness:
Vol­ume of vehi­cles offer­ing in that price range was up con­sid­er­ably from a year ago.



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