Used Vehicle Prices Increase for Third Consecutive Month

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

Wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) increased for the third consecutive month in August. This brought the Manheim Used Vehicle Value Index to a reading of 124.3, representing an increase of 2.1% from a year ago.

Statistically speaking, the largest seasonal decline in mix- and mileage-adjusted prices occurs between September and November, according to Manheim. Over the past decade, the seasonal impact has averaged an additional percentage point of depreciation in each of the three months.

This year, along with the international issues (which will likely remain turbulent), the nation’s budget and debt ceiling “debates” will add uncertainty to the market, according to Manheim.

In August, a straight average of auction prices for rental risk units bumped up from July’s low, but it remained below 2013 and 2014 levels, according to Manheim. The average mileage on rental risk units fell to its lowest level since October of last year.

Auction volumes were down in August after being up significantly in the first seven months of the year. In August, new vehicle sales into rental declined 3% but were still up 5% year-to-date, says Manheim.

Pickups, SUVs, CUVs and vans continued to have higher prices year-over-year. Midsize and luxury cars were also up, but the comparison was against weak year-ago pricing. Over the past year, compact car prices are down 6.7%, according to Manheim.

August Used Vehicle Index, courtesy of Manheim.
August Used Vehicle Index, courtesy of Manheim.

Comment On This Story

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

Market Forces Driving Car Rental in 2018

An analysis of the conference calls of Avis Budget Group and Hertz Global Holdings reveal trends and initiatives involving fleet right sizing, pricing, ancillary revenue opportunities, and renting to ride-hailing drivers.

Trends Moving the Truck Market

Storylines that emerged from the 2018 Work Truck Show include the increasing need for on-site productivity, inclusion of active safety systems in trucks, DPF frustrations affecting product decisions, data management, and the growing link between fleet management and company revenue.

MIT Study Reinforces the Newfound Importance of Fleet

Uber and Lyft drivers make far less when factoring vehicle expenses, though the actual numbers are now in dispute. A proper lifecycle cost analysis would’ve helped, and shows the benefit of collaboration with fleet professionals.

Job Finder: Access Top Talent. Fill Key Positions.