Wholesale Prices Reach Four-Year High

Price changes for selective market classes for June 2016 versus June 2015. Courtesy of Manheim.
Price changes for selective market classes for June 2016 versus June 2015. Courtesy of Manheim.

Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) increased for the third consecutive month in June, resulting in a Manheim Index reading of 126.2.

After rising every month in the second quarter, wholesale prices are now at their highest level in more than four years — only 1.3% from the record high reached in May 2011, according to Manheim.

A straight average of auction prices for rental risk units sold in June jumped nearly 18% from a year ago, according to Manheim.

Last June, the average mileage on rental risk units was a record-high 51,200 miles. This year, it fell to 38,500 miles — the lowest since December 2013, says Manheim. June’s mix of crossovers and vans was significantly higher, while the share of rental risk unit sales accounted for by mid-size cars was down. Rental units being sold at auction this June were also in better condition.

Rental risk auction prices — adjusted for broad changes in mix and mileage (but not condition) — were flat in June relative to a year ago. Prices were up 2.2% from May on significantly lower volume, according to Manheim.

All of the strength in wholesale pricing remains concentrated in pickups, vans, and certain sports cars — the same segments that are enjoying the strongest increases in average new vehicle transaction price. Wholesale pricing for all other market classes is flat to down.

June Used Vehicle Index, courtesy of Manheim
June 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

An Inside Look at Car Rental in China

A trip to a new car rental convention in Guangzhou reveals a booming market, yet one facing unique challenges.

Auto Manufacturers: Mobility Disruptors or Fleet Providers?

Maven’s Alex Keros shares insights into evolving smart mobility business models and new opportunities with fleet management.

What is Your Time Worth?

Personal observations of retail and travel transactions reveal just how much a consumer’s time is worth today, and how increasingly intolerant we are of inefficient transactions.

Job Finder: Access Top Talent. Fill Key Positions.

>