ATLANTA – Wholesale used-vehicle prices (on a mix, mileage, and seasonally adjusted basis) slipped in September, erasing part of the gain posted in August. The Manheim Used Vehicle Value Index was 111.9 in September, representing a year-over-year gain of 0.9 percent.
Model-year changeover is always a tumultuous time for pricing in the wholesale used-vehicle market. Last year, employee pricing rapidly cleared out carryover stocks and the downward pressure on used-vehicle pricing was swift and severe. This year, the process has been smoother, but prolonged. Regardless the clearance method, according to Manheim, carryover models always confirm two industry truisms: For used-car managers at franchised dealerships, the hardest competition is often their own new-car department.
Price adjustments that maintain normal price differentials between segments within the used-vehicle market happen quickly.