Manheim: Wholesale Buoyed for 4th Month, CNW Research: Dealers Sold a Lot of Used in April May 8, 2014

Wholesale Still Strong Thanks to Dealer Demand

Tom Webb
Chief Economist
Manheim Consulting

Wholesale prices are remaining strong – up for fourth consecutive month in April. The Manheim Used Vehicle Value Index reached 124.9, a 4.8% increase from a year ago. While the market has been carefully watching for declining used vehicle values from surging supply, that time hasn’t arrived yet. Strong dealer demand in the competitive wholesale market has been setting a solid platform for prices.

Read the latest Manheim Used Vehicle Value Index report

Strong New Vehicle Demand and Reasonable Production Schedule Left Dealer Inventories in Better Shape:
Automakers may continue to enjoy higher transaction prices and flat incentive spending, which strengthens used values.

Retail Used Unit Sales by 7 Publicly Traded Dealer Groups Up More than 10% in Q1:
Net profits were at record levels, aided by operating efficiencies, F&I income, and CPO sales.

Strongest Wholesale Price Tier Was in $12K to $14K Price Range:
In 2013 and early 2014, strongest tier had been in $8K to $10K range.
Spinella_Art_ head shot

Dealers See Strong Used Car Sales Volume in April

Art Spinella
CNW Research

Used car sales on dealer lots saw some forward motion in April – up 3.65% in transaction volume over a year ago and more than 28% over March 2014. Franchised dealers saw the highest volume in April – up 4.7% over a year ago; Independent dealers were up 3.95% over April 2013 and private party sales were up 2.21% over the prior year.

Check out Art Spinella’s analysis of April retail used vehicle sales

Shoppers Who Ended Up at Dealer Due to Something Seen on Internet Jumped Up 116% Over Year Ago:
Newspapers saw decline of 16% versus year ago for bringing in used car shoppers.

Sales of One-to-Five Year Old Vehicles Continued to Be Hot Segment:
With increase of 9% over year ago, along with increase of 27.7% versus March 2014.

Number of Consumers Shopping Franchised Dealers Up 46.5% Over March, But Down 4.5% from Last Year:
Independent dealers were up 22% versus March and down 22% from last year.
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