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

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.
Spinella_Art_ head shot

Franchised Dealers See Big Gains in Used Vehicle Prices Over Year Ago

Art Spinella
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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