Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) rose 1.9% in April and pushed the Manheim Used Vehicle Value Index to a record high of 126.6. Over the past year, adjusted wholesale prices have risen 4.9%. Lower wholesale supplies and higher retail demand continue to be the driving forces behind strong used vehicle residuals. In addition, wholesale used vehicle prices are also now being supported by the new vehicle market’s tight inventories, steady demand, and higher net transaction prices. Used vehicles: restricted wholesale supplies and strong retail demand. The National Auto Auction Association reports that total auction sales declined 8.6% in the first quarter of 2011. April was expected to show another decline, but at a smaller percentage. The reduced auction volume has come solely from the commercial consignor side, as dealer consignment … [Read more...]

Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) rose 0.5% in March. (Before the seasonal adjustment, wholesale prices increased by almost 5% during the month.) March’s Manheim Used Vehicle Value Index reading was 124.2, which represented an increase of 3.6% from a year ago. The news of significant employment growth in February and March has, unfortunately, been overshadowed by rising gas prices, political unrest in the Middle East and North Africa, and the earthquake and tsunami in Japan. With the new vehicle market now anticipating selective inventory shortages in the near term, and with the economic recovery possibly set to show a temporary slowdown, future wholesale prices overall could be volatile, and there certainly will be significant swings for specific models and market classes. Employment gains provide a solid base for used vehicle … [Read more...]

Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) declined 1% in February after rising in each of the previous five months. (Before the seasonal adjustment, wholesale prices rose 2% during the month.) The Manheim Used Vehicle Value Index stood at 123.6 for February, which represented an increase of 4.7% from a year ago. Rising energy prices and new vehicle incentives generated considerable news during the month, but neither issue had a material impact on wholesale pricing. Meanwhile, significant, and simultaneous, increases in both new and used vehicle retail sales suggest a reinvigorated consumer sector. Couple that with an apparent strengthening in the labor market, and you have the ingredients for a self-sustaining recovery. New and used vehicle retail markets continue to strengthen. The seasonally adjusted annual rate of new vehicle sales came … [Read more...]

Wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) rose 0.4% in January. That left the Manheim Used Vehicle Value Index at 124.9, an increase of 6.2% from a year ago. January’s gain represented a continuation of the two-year rise in used vehicle prices, which has now pushed values up by more than 27%. The ability of wholesale used vehicle prices to rise (after meeting and then stretching the natural limitations imposed by the market) is a testament to the restructuring of the new vehicle marketplace -- most notably, the manufacturers’ ability to produce to specific demand and achieve higher transaction prices. New vehicle sales strengthen further in January. The seasonally adjusted annual rate of new vehicle sales was 12.6 million in January. This built upon the steady rise achieved in 2010 (an 11.0 million pace in first quarter, 11.3 million in … [Read more...]

Fittingly, wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) rose in December to cap off a second year of exceptionally strong pricing. December’s gain was modest (0.1%), but it meant prices rose 5.9% for the year, and it left the Manheim Used Vehicle Value Index at a record 124.4 level. On an annual average basis, the increase in wholesale prices in 2010 (+7.4%) and 2009 (+5.1%) were the largest and the second-largest in the Index’s 16-year history. Of course, they came on the heels of the largest annual decline in wholesale pricing (-6.3% in 2008). Higher new vehicle inventories, incentives, and sales fail to stop the rise in used vehicle prices. Dealers started December with a 67-day supply of new inventory, the highest count since March, but not an alarming level. The unit count was 2.4 million, the highest since May 2009, but, again, within … [Read more...]