Wholesale used vehicle prices in March showed a continued decline for the third straight month, according to Manheim Consulting. The Manheim Used Vehicle Value Index reading hit 120.4 – down 4.6% compared to a year ago, Manheim Consulting reported in its April Auto Industry Brief.
Results for the first 15 days of April also indicated a further easing in prices.
Vehicle availability in the wholesale market has improved recently, but the level of retail demand has as well. As a result, Manheim Consulting characterized “the recent moderation in wholesale pricing as more a natural realignment with respect to new vehicle prices than a supply-driven issue.”
The report also noted that a straight average of auction prices for rental risk units reached a new high in March. However, this increase primarily reflected a shift in the composition of the vehicles sold. For example, in the first quarter of 2013, current and previous model-year vehicles composed 61% of all rental risk units sold. The remaining 39% were all older units. In contrast, in the first quarter of 2012, current and previous model year vehicles made up only half of all rental risk units sold.
In addition, the average mileage on rental risk units sold during 2013’s first quarter was about 5% lower compared to those sold in the first quarter in 2012, Auto Industry Brief reported.
Manheim Used Vehicle Value Index
January 1995 = 100