Wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) increased for the third consecutive month in August. This brought the Manheim Used Vehicle Value Index to a reading of 124.3, representing an increase of 2.1% from a year ago.
Statistically speaking, the largest seasonal decline in mix- and mileage-adjusted prices occurs between September and November, according to Manheim. Over the past decade, the seasonal impact has averaged an additional percentage point of depreciation in each of the three months.
This year, along with the international issues (which will likely remain turbulent), the nation’s budget and debt ceiling “debates” will add uncertainty to the market, according to Manheim.
In August, a straight average of auction prices for rental risk units bumped up from July’s low, but it remained below 2013 and 2014 levels, according to Manheim. The average mileage on rental risk units fell to its lowest level since October of last year.
Auction volumes were down in August after being up significantly in the first seven months of the year. In August, new vehicle sales into rental declined 3% but were still up 5% year-to-date, says Manheim.
Pickups, SUVs, CUVs and vans continued to have higher prices year-over-year. Midsize and luxury cars were also up, but the comparison was against weak year-ago pricing. Over the past year, compact car prices are down 6.7%, according to Manheim.