ATLANTA – Wholesale used-vehicle prices (on a mix, mileage, and seasonally-adjusted basis) rose 0.7 percent during March. Before the seasonal adjustment, wholesale prices were up more than 3 percent during the month. This reduced the year-over-year decline in Manheim Used Vehicle Value Index to -0.7 percent.
The current strength in wholesale pricing (adjusted prices have risen 2.4 percent from a recent low-point in July 2006) has been driven by market fundamentals – most notably, labor market and credit conditions. Although these factors are expected to remain positive, further upward movement in used-vehicle pricing may be limited by the abrupt end to the tax refund season, higher gasoline prices, and an overall slowing in economic growth, according to Manheim.