A 0.5% on a month-over-month increase in wholesale used vehicle prices (on a mix-,mileage, and seasonally adjusted basis) in April, brought Manheim’s Used Vehicle Value Index to 124.7%, representing a 1.6% year-over-year increase and the first time this year that the index has risen on a month-over-month basis, according to the company.
“Used vehicle values have not collapsed the way many analysts have warned of for more than a year due to expected increases in wholesale supplies. And in fact, what weakness we have seen is probably more a result of excessive new vehicle inventory, not used. At retail, the used vehicle market remains healthy, and dealers have needed only a modest decline in auction pricing to maintain acceptable inventory turn rates,” Manheim stated in its Used Vehicle Value Index report.
In April, mid-sized cars saw the largest decline in wholesale pricing, according to Manheim. Only pickups, the company added, saw pricing gains higher than 0.5%.
Total used vehicle retail sales, which include private-party transactions, were up 3.6%, with franchised dealer sales up 5%, and independent sales up 4%, according to NADA. CPO sales went up by 0.7% in April and 0.3% in the first quarter.
Average wholesale prices for rental risk units sold at auction were down 2% in April, compared to the same time last year. On a month-over-month basis, however, rental risk unit prices were up 0.3%.
Approximately 33% of rental risk units sold were comprised of SUV/CUVs in April, compared to 23% in the year-ago basis. Compact cars accounted for 26% of rental risk units sold this April, compared to 33% last year. The average mileage for rental risk units in April was 39,500 miles, 11% lower than the same time last year.