Manheim Releases Quarterly Report, Black Book’s Market Insights Report April 9, 2015

Manheim Q1 Report Sees Strong Used Vehicle Price Performance

Tom Webb
Chief Economist
Manheim Consulting

The first quarter saw an increase in wholesale used vehicle prices – up 1.3% from a year ago and 1.6% from the fourth quarter of 2014, according to the Manheim Used Vehicle Value Index. Strong consumer demand is helping, as are a stable job market and attractive financing. As for price segment performance, the strongest demand for used vehicles was in the $15,000-$20,000 and $20,000-$25,000 pricing tiers; the weakest continued to be in the $9,000-$11,000 range.

See Manheim’s 2015 Used Car Market Report

Wholesale Prices Remained Above Trend Level During First Quarter:
Strong profit opportunities in retail market helping with consumers continuing to see value in purchasing used vehicles.

Compact Car Prices Weakest Segment in March and Down 5.2% from Year Ago:
Luxury car prices increased 1.3% over year ago, expect values to bounce back in April.

New Vehicle Inventory Levels Should Help Used Vehicle Values in April:
Will see in auction lanes if dealers placed right money on number of trade-ins they received in March.
Anil Goyal

Last Week Sees Strongest Car and Truck Values for this Season

Anil Goyal
VP of Automotive Valuation and Analytics
Black Book

Tax season buying and selling activity appears to be at a high point, with strong levels of change from both the cars and trucks. Entry-Level Cars, Entry-Midsize Cars, and Upper Mid-size Cars showed strength, while Compact SUVs and Full-size Pickups outperformed for truck segments. Entry-Level cars got another look by dealers, seeing the biggest increase among all segments at +0.73% last week. Compact SUV and Full-Size Pickup also saw strength with increases of +0.68% and +0.54%, respectively.

Check out Black Book’s latest Market Insights Report

Overall, Volume-Weighted Car Values Increased by +0.05% Last Week:
Extending price performance market strength to five consecutive weeks.

Volume-Weighted Truck Values Stronger than Cars, Up by +0.15% Last Week:
Entry-level cars did very, seeing biggest increase of all segment at +0.73% last week.

Vehicle Segment Markets Continue to Show Broad Strength Across the Board:
Both car and truck values appreciated last week in the strongest week this season.
Expert Video Recap
Video news that moves people and ideas
Gamache_Larry_ Feb 2015 video
Managing Inventory with Growing Off-Lease Volume

Mak­ing sure deal­ers are buy­ing are what their cus­tomers want is just one of the ele­ments needed for used car sales profits.

Video News & Opinions
Video news that moves people and ideas
Goyal_Anil_Black Book
What Lenders Should Look for in UC Market

As the sup­ply increases in the used car mar­ket and inter­est rates start to rise, grad­ual soft­en­ing in the mar­ket is expected.

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