Manheim: Dealers Bring Active Acquisition to Auction, Spinella: Franchised Dealers See Big Price Increase December 10, 2014
Webb_Tom_Manheim


Wholesale Vehicle Sales Sees Second Month of Price Increases

Tom Webb
Chief Economist
Manheim Consulting

 
Wholesale used vehicle prices saw its second month in a row of increases, with November’s Manheim Used Vehicle Value Index at 123.3 – a 0.7% increase from a year ago. The May-through-September price decline brought down values by less than 3%, and the subsequent two-month rise have brought prices 1.3% below their April high. Auctions saw a lot of activity in November with dealers’ mood being one of active acquisition.

Click here to read the latest Manheim Used Vehicle Value Index

Lease Turn-ins and Newer Trade-ins Have Raised Used Selling Prices at Franchised Dealers:
Another strong month of CPO sales pushed their year-to-date tally up 10.2% from year-ago period.

Auction Prices for Rental Risk Units Moved Up in November Over October:
October’s downward move was exaggerated by heavy volumes of below-average condition vehicles.

Luxury Vehicles Continued to Outperform Overall Market in November:
But due to weakness earlier in year, luxury still has a lot ground to make up.
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Franchised Dealers See Big Gains in Used Vehicle Prices Over Year Ago

Art Spinella
President
CNW Research

Total used sales rose 0.46% in November vs. one year prior, and slipped 1.6% from October. Franchised dealers were up 1.43% to 1.22 million units sold. Independent dealers sold 1.14 million used vehicles, a figure virtually unchanged from one year ago. Private Party sales declined 0.9% to 752,369 units sold. Excellent inventory control and CPO sales helped Franchised dealers see a 21% rise in transaction prices vs. year ago.

Here’s the latest CNW Research report on retail used vehicle sales

Independent Transaction Prices Were Also Strong – Up Nearly 8%:
Private Party transaction prices were up by 2.1% but down from dealer performance.

Total Value from All 3 Channels Reached $33.53B – 15% Gain from Year Ago:
Cars slipped by 1.33% as share of total sales and SUV sales rose by 17.45%.

Number of Used Vehicles Sold to Sub-prime Customers Jumped 25%:
Sub-550 up by 27.5% and responsible for 22.25% of total November sales.

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