Dealers Seeing Profitable Retail Sales / Black Book Launches Weekly Market Insights April 23, 2015

Manheim Index Down in March but Retail Side Keeping Prices Stable

Tom Webb
Chief Economist
Manheim Consulting

Wholesale prices in March were down 0.5% from February but were virtually identical to one year ago. The Manheim Used Vehicle Value Index was 124.5 in March, and 124.4 in March 2014. On a quarterly basis, the first quarter was 1.6% higher than Q4 2014 and 1.3% higher than Q1 2014. Strong profit opportunities on the retail side have helped wholesale prices remain slightly above the trend level.

Here’s the Manheim Used Vehicle Value Index for March

New Vehicle Sales Environment Remains Supportive to Used Vehicle Values:
Average transaction prices continue to rise, and overall incentive spending was flat.

Overall Used Vehicle Market Stable with Strong Late-Model Vehicles Sales:
Franchised and independent retail sales appear to have been level with year ago.

Rental Risk Units Saw Auction Prices Spike in March from February:
Seasonal movement less than last year’s spike – prices down 4.2% from year ago.
Anil Goyal

Dealers Have Enough Inventory and Are Looking for Bargains

Anil Goyal
VP of Automotive Valuation and Analytics
Black Book

Cars and trucks had a stable period last week, through there were signs of buyer resistance increasing; more no-sales are being reported across the country. Car segments were relatively unchanged from the previous week and trucks saw slightly better results, up at +0.31% over the previous week. Strong car segments were Compact Cars (+0.17%), Full-Size Cars (+0.14%), Entry Mid-Size Cars (+0.12%). Two Truck segments did especially well: Compact SUVs (+1.17%) and Mid-Size SUVs (+0.65%).

Check out the new Black Book Market Insights

Small Cars Appear to Be Selling Better than in Past Weeks:
Good supply should help prices slowly decline through the rest of the year.

SUV and Pickup Segments Had Broad Strength in the Truck Market:
Fuel price decline expected to continue, which could help truck price strength.

Dealers Say they Have Enough Inventory and Are Looking for Bargains Now:
Several buyers cautious about how much they’re willing to pay for inventory replacement.
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