Manheim Releases Q1 Market Report, Spinella Sees Big Leap Over February April 11, 2014

Harsh Winter Didn’t Hurt Used Vehicle Values

Tom Webb
Chief Economist
Manheim Consulting

While weather conditions were harsh in sections of the US earlier this year, used vehicle values increased during Q1. The Manheim Used Vehicle Value Index increased 2.2% during the quarter and was 3.3% higher than a year ago. Tax refunds in late March were up 3% over last year, giving consumers more spending options. Storm conditions led to higher insurance replacement demand – meaning rental car companies kept their risk units longer to meet heavy demand in replacement and held off returning them for resale.

Here’s the Manheim Consulting Q1 market report

Compact Cars Continued to Be Weak in UC Market:
Values were down 4.5% YOY as consumers shifted to midsize cars and CUVs.

Midsize Cars Were Popular and Saw 4.5% Price Gain Since Last Year:
Luxury car prices fell 0.6% in March from previous year as more off-lease units returned.

SUV and CUV Prices Rose 3.6% in March Compared to Year Ago:
Driven much by mid-size CUVs providing combination of space, utility, and fuel efficiency.

Spinella_Art_ head shot

Retail Used Vehicles Sales Ended Month on Strong Note

Art Spinella
CNW Research

March ended much better than had been expected for used vehicle sales in CNW Research’s latest Retail Automotive Summary. Spinella’s March sales figure report saw volumes increase more than 50% over weather-impacted February. That jump happened across all three used retail channels – Franchised, Independent, and Casual sales. Year-over-year, retail used vehicle sales increased 2.7% with franchised units up 1%, Independents up 4.8%, and Casual up 2.55%. Franchised transaction prices also did very well – rising a healthy 10.8% and bolstered by growing sales in certified pre-owned (CPO) sales.

Read the latest retail used vehicle sales report from CNW Research

Independents Saw Transaction Price Increase But at More Modest 1.52% vs. Year Ago:
Private party prices grew by 5% with much of it coming from 15+-plus year old models.

There Were 13% Fewer Used-Car Shoppers on Dealer Lots than Year Ago:
That indicates the pent up demand log jam may well be breaking.

Sub-prime Buyers Rose 17% Vs. Year Ago and 57% Over February:
Sub-550 FICO unit sales rose 51.6% over February, and had an 11.8% gain vs. year ago.
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