Rental Car Purchases Highest in Eight Years

In June, the new vehicle SAAR (seasonally adjusted annual rate) climbed to almost 17 million — with the help of higher sales into rental, according to Manheim Consulting. Rental car purchases for May and June were the highest since 2006.

Manufacturers’ total number of vehicle sales into rental fleets for June was 113,806 units, a 10% gain over June 2013, according to Automotive Fleet’s Monthly Fleet Sales Report. However, at 967,787 units, total sales into rental for the first six months of 2014 were 0.8% lower than the first six months of 2013.

Manheim Used Vehicle Price Changes for Selective Market Classes (June 2014 vs. June 2013)

The Manheim Used Vehicle Value Index fell slightly in June over May, but was up 3.6% year-over-year. According to Manheim, the strength in wholesale pricing reflects strong retail demand and “extremely favorable retail credit conditions.”

Manheim predicts that the growth in wholesale supply will accelerate and inevitably put downward pressure on residual values, but the decline should be modest.

ADESA's Monthly Used Vehicle Prices Analysis


ADESA also saw an increase in wholesale used vehicle prices year-over-year. According to ADESA Analytical Services’ monthly analysis, June wholesale used vehicles prices averaged $10,004 — up 4.7% compared to June 2013. However, ADESA reported a greater than usual month-to-month softening from May to June.

Wholesale Used Vehicle Price Trends     
           
  Average Prices ($/Unit)     Latest Month Versus:  
  Jun-14 May-14 Jun-13 Prior Month Prior Year
Total All Vehicles $10,004 $10,328 $9,554 -3.1% 4.7%
Total Cars $8,932 $9,226 $8,642 -3.2% 3.3%
Compact Car $6,890 $7,267 $6,799 -5.2% 1.3%
Midsize Car $8,128 $8,504 $7,946 -4.4% 2.3%
Fullsize Car $7,154 $7,200 $7,120 -0.7% 0.5%
Luxury Car $12,443 $12,668 $11,769 -1.8% 5.7%
Sporty Car $12,981 $13,140 $12,551 -1.2% 3.4%
Total Trucks $10,565 $10,914 $9,612 -3.2% 9.9%
Mini Van $6,834 $7,311 $6,401 -6.5% 6.8%
Fullsize Van $11,307 $11,237 $9,853 0.6% 14.8%
Mini SUV $12,701 $13,020 $11,563 -2.5% 9.8%
Midsize SUV $7,497 $8,387 $6,602 -10.6% 13.6%
Fullsize SUV $10,646 $10,901 $10,886 -2.3% -2.2%
Luxury SUV $19,798 $19,765 $18,322 0.2% 8.1%
Compact Pickup $7,576 $7,723 $7,283 -1.9% 4.0%
Fullsize Pickup $13,128 $13,343 $11,857 -1.6% 10.7%
Total Crossovers $12,392 $12,817 $12,627 -3.3% -1.9%
Compact CUV $11,343 $11,575 $11,338 -2.0% 0.0%
Mid/Fullsize CUV $13,495 $14,095 $13,995 -4.3% -3.6%


This Kontos Kommentary analysis is based on nearly six million annual sales transactions from more than 150 of the largest U.S. wholesale auto auctions, including those of ADESA as well as other auction companies. ADESA Analytical Services segregates these transactions to study trends by vehicle model class.


Comments

  1. John Maus [ July 9, 2014 @ 10:49AM ]

    These averages don't mean much without having the breakout by model year and model. For example, just the simple act of having a higher number of newer models and presumably more expensive units will show higher prices using this blended method.

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