Wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) declined slightly in August. That left the Manheim Used Vehicle Value reading at 126.9 for August, an increase of 2.1% from a year ago.
Wholesale pricing in 2016 has been supported by a retail market that enjoyed higher volumes, stabilizing margins, and respectable turn rates, according to Manheim. And, importantly, dealers have continued to increase efficiencies in their used vehicle operations.
Unadjusted auction prices for rental risk units remained near record levels in August. As was the case in recent months, the age, mileage, mix, and condition of vehicles being offered was much improved from a year ago, according to Manheim. As such, after adjusting for mileage and broad changes in mix, auction prices were down 1.2% from a year ago.
The volume of rental risk units sold at auction was relatively high for August. This could be a sign that stop-sale/stop-use units are finally being repaired and creating less demand for loaner vehicles, according to Manheim. New unit sales into rental rose 11% in August and were up 6% year-to-date.
New vehicle sales into commercial fleets declined 10% in August but were up 9% year-to-date, based solely on the strength of pickups and the new Euro-styled vans, says Manheim.
Auction sales volumes for end-of-service fleet vehicles have also been strong in 2016. Average auction pricing for midsize fleet cars is running below the prior two years, despite lower average mileage at time of sale, according to Manheim. Pickups and vans are doing well in the resale market for fleet managers.