Wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) moved modestly higher in July. This increase brought the Manheim Used Vehicle Value Index to a reading of 124.1 in July.
Given that seasonally adjusted prices were declining at this point last year, the Index’s year-over-year change moved from -0.1% in June up to 1.1% in July, according to Manheim.
The continued strength in wholesale pricing reflects a used vehicle market where dealers are enjoying higher throughput, achieving ever-greater efficiencies and still growing F&I income, says Manheim.
In July, auction prices for rental risk units (adjusted for broad shifts in market class and mileage) declined for the fourth consecutive month. On a year-over-year basis, prices were down 4.3%. Unadjusted prices were down a more substantial 11.7% over the past year, and the average price slipped below $14,000 for the first time since October 2011, according to Manheim.
Auction volumes for rental risk units continued to exceed their year ago level, but they were in line with the pace of 2013 and 2012. New vehicle sales into rental increased less than 1% in July, resulting in a year-to-date gain of 5.9%, says Manheim.
Pickups, SUVs, CUVs and vans continued to have higher prices year-over-year. Luxury cars were also up, but the comparison was against weak year-ago pricing. Over the past year, compact car prices were down 6.7%, according to Manheim.