Used Vehicle Wholesale Prices Decline In April
Manheim has released it Used Vehicle Value Index results for April and the salvage auction company stated that used vehicles whole prices declined in April. The wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) fell 0.2 percent in April. The company acknowledged that prices were up slightly before the seasonal adjustment. April’s decline pushed the Manheim Used Vehicle Value Index to a reading of 124.2, which represented a decline of 0.6 percent from a year ago.
Although April represented the third consecutive monthly decline in the Manheim Index, the company’s release stated that the pricing isn’t weak and used vehicle values are elevated and have remained in a relatively narrow range for more than four years.
Higher new vehicle transaction prices and disciplined marketing have played a role in supporting used vehicle residual values, according to Manheim.
In the first quarter of 2015, the seven publicly-traded dealership groups had a 6.7 percent increase in same-store used unit retail sales. It was their 23rd consecutive quarterly increase in unit volumes. Gross margins narrowed slightly, but net profits reached record highs. All indications are that the healthy sales environment continued in April, the index stated.
The Used Vehicle Value Index for April also showed new vehicle sales are stable, solid and sensible. Year-to-date sales are in line with expectations of the forecasted 17 million. There has also been a noticeable increase in fleet deliveries, with new vehicles sales into rental up 11.9 percent through April.
And, auction prices for rental risk units fell from last year’s record high, by more than 4 percent. The company expects auction volumes for rental risk units to continue to rise significantly in April. This was reflective of the 11.9 percent increase in new unit sales into rental during the first four months of 2015. Conversion rates were better-than-average and average mileage, at more than 46,600 miles, was high.
The index also stated that midsize cars had an uptick in pricing in April, but pickups, vans, and large SUVs continue to be the significant outperformers.
Read the entire report here: http://press.manheim.com/Manheim-Reports-Used-Vehicle-Value-Index-Results-for-April.