Manheim: Used Vehicle Prices Increased Slightly in November

Price changes for selective market classes for Nov. 2013 versus Nov. 2012. Courtesy of Manheim.
Price changes for selective market classes for Nov. 2013 versus Nov. 2012. Courtesy of Manheim.

Wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) started inching up in November after declining in October. According to Manheim Consulting, the Manheim Used Vehicle Value Index reading was 122.4 in November, which represented a 0.2% decline from a year ago.

In November, new vehicle inventory levels were higher than in previous months, wholesale supplies were rising, used retail gross margins remained narrow, and some manufacturers got aggressive with incentives to jump-start year-end closeout sales, says Manheim. Dealers have been quickly selling their wholesale acquisitions — and at a nice profit, despite those narrow gross margins.

According to CNW, used vehicle sales were strong — at least for franchised dealers who posted a 10% increase in unit sales. Total used unit sales, including independent dealers and private-party transactions, rose a more modest 4.5%. Preliminary numbers for manufacturer certified pre-owned sales in November showed a continuation of their record-setting path.

After slightly outperforming the market in October, luxury cars slipped back to the bottom of the pack in November, says Manheim. In addition, wholesale pricing for midsize cars has also underperformed the overall market in recent months, which is not surprising given the level of inventory and incentives in that segment in the new vehicle market. According to Manheim, the strong segments of the market continued to be pickups, vans and sports cars.

November Used Vehicle Index courtesy of Manheim.
November Used Vehicle Index courtesy of Manheim.

 

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

The Customer Isn’t Always Right

Not caving to a customer with a blatant agenda may have consequences, especially for a small rental company that relies on stellar Yelp ratings to advertise. But business integrity must prevail.

The Truth Behind Compact Van Depreciation

Why are large van values holding up better than their compact counterparts, and will it last?

Car Rental’s Call to Action on Autonomous Vehicles

The car rental industry has built-in advantages to support a world with driverless cars, but it needs to take the next step in partnering with autonomous vehicle stakeholders.

Job Finder: Access Top Talent. Fill Key Positions.