Used Vehicle Prices Up Again in October

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

Wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) increased for the fifth consecutive month in October. This brought the Manheim Used Vehicle Value Index to a reading of 125.3, exactly where it started the year and up 2.9% from last October.

Continued strength in wholesale pricing is reflective of higher new vehicle transaction prices and a rewarding retail used vehicle environment. Higher wholesale prices, narrower gross margins, and record dealership profits are evidence that the benefits of increased dealership efficiency are being passed to consumers and enabling dealers to bid up prices in the wholesale market, according to Manheim.

In October, auction prices for rental risk units (adjusted for mileage and mix) showed a normal seasonal decline but were up 0.7% from a year ago, says Manheim. There was a smaller monthly decline in the straight average of rental risk pricing than in mix-adjusted series since pickups, crossovers and vans accounted for a greater share of off-rental volume in October than in September.

Last month, auction volumes for rental risk units were down significantly from last October, since last year’s normal August and September de-fleeting was pushed into October — due to several recalls that impacted many units in the rental fleet.

Compact cars remain the weakest segment, both in recent months and over the past year. Although wholesale pricing for luxury cars has been soft during the past year, October was relatively good. But don’t expect that trend to continue given the influx of off-lease luxury units that will come in November and December, according to Manheim.

August Used Vehicle Index, courtesy of Manheim
August 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

Autonomous Vehicles and the Changing Role of the Fleet Manager

With fewer drivers and substantially longer fleet lifecycles, fleet managers will pivot to new job functions.

2017: Fleet Mix Will Be Paramount

Car rental companies are migrating to vehicle segments with better residual values, though not without bumps in the road.

Auto Rental Summit: Five Trend Lines

Taking in the seminars, discussions, and networking at the 2016 Auto Rental Summit, trend lines emerged around shifts in model mix, data protection issues, increasing labor costs, workforce engagement, and new platforms to rent cars.

Job Finder: Access Top Talent. Fill Key Positions.