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.
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.