Rental Risk Unit Mileage Falls 13%

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

Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) increased by 0.2% in December. This brought the Manheim Used Vehicle Value Index to 124.9, a decline of 0.6% from a year ago.

Despite significant increases in auction volumes in 2016, wholesale pricing was firm. On an annual average basis, the Manheim Index was even able to eke out a small gain of 0.3%, the third increase in a row.

In addition to macro-economic and industry factors, this stability has been driven by better — and more efficient — remarketing practices that have enabled commercial consignors to anticipate, respond to, and thus minimize impending swings in wholesale pricing, according to Manheim.

In December, a straight average of auction prices for rental risk units sold at auction topped the $17,000 mark for the first time ever, and it was 5% higher than a year ago, says Manheim. However, after adjusting rental risk prices for broad shifts in market class and mileage, pricing was 4.4% below a year ago.

The average mileage on rental risk units sold in December (38,600 miles) was similar to recent months, but it was 13% lower than a year ago, according to Manheim. The overall condition grade of rental units sold also continued to improve.

Although overall wholesale prices have been very stable of late (a movement of only 1.2% over the past four years), the differences between market classes have been pronounced. At the extremes, adjusted wholesale prices for pickups have risen 28% during this period while compact car values fell 14%, according to Manheim. Blame it on the consumer preference shift toward crossovers and away from small sedans.

December Used Vehicle Index, courtesy of Manheim
December 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

Trump and Regulations: An Alt-Fuel View

With 2025 emissions targets back in review, manufacturers, alt-fuel, and alt-power suppliers weigh in on the potential impacts of Trump’s initiatives.

Why GM’s Telematics Announcement is a Really Big Deal

Enabling a telematics connection at the factory — and not through an aftermarket hardware installation — is a game changer for fleets.

Four Thoughts From the 2016 Conference Calls

Sifting through the notes of Avis Budget Group’s and Hertz Global Holdings’ recent fourth quarter conference calls give us some trend lines to watch out for in 2017. (Of course, this gives us an incomplete snapshot, as Enterprise Holdings is privately held.)

Job Finder: Access Top Talent. Fill Key Positions.

>