Mileage Remains Above 45K on Rental Resale Vehicles

Price changes for selective market classes for March 2015 versus March 2014. Courtesy of Manheim.
Price changes for selective market classes for March 2015 versus March 2014. Courtesy of Manheim.

Wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) fell 0.5% in March. March’s decline pushed the Manheim Used Vehicle Value Index to a reading of 124.5, which was virtually identical to its year-ago reading of 124.4.

Although wholesale prices fell the last two months, the average level for the first quarter was 1.6% higher than the fourth quarter of last year and 1.3% above the year-ago quarter, according to Manheim. Wholesale pricing has remained slightly above trend level due to continued strong profit opportunities on the subsequent retail sale.

Industrywide it is still true that the new vehicle sales environment is supportive to used vehicle residuals. Reasonable new vehicle inventory levels going into April should also help used vehicle values, says Manheim.

Auction prices for rental risk units sold in March jumped up from February, but the seasonal movement was less than last year’s spike. As a result, prices – although still strong – were down 4.2% from a year ago, adjusting for mileage and broad changes in mix, according to Manheim. On a sales-weighted basis, rental risk prices in the first quarter of 2015 were down 2% from the first quarter of 2014.

Although average mileage on rental risk units in March dipped from February’s record high, it remained above 45,000 miles and up 8% from a year ago.

In recent months, as well as over the past year, wholesale pricing for compact cars has been weak. Pickups and vans continued to be the significant outperformers, according to Manheim.

March Used Vehicle Index, courtesy of Manheim.
March 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.