Manheim: Supplies Up But Not Outside Norm, Lincoln MKZ Had Biggest Gain May 14, 2015

Manheim Consulting Still Confident in Used Vehicle Market Strength

Tom Webb
Chief Economist
Manheim Consulting

Wholesale prices saw their third consecutive monthly decline, down 0.2% in April from March. The Index had a 0.6% decline from one year prior. Manheim Consulting says it would be inaccurate to state that wholesale pricing is weak; values have been elevated and have remained in a relatively narrow range for more than four years. Higher new vehicle transaction prices and disciplined marketing have been supporting residuals; and while wholesale supplies are increasing, they’re not yet outside of historic norms.

Here’s the Manheim Used Vehicle Value Index for April

Midsize Cars Had Price Uptick, but Remain One of Weaker Segments in Past Year:
Pickups, vans, and large SUVs continued to be the significant price outperformers.

Fleet Deliveries Saw Increase in New Vehicle Sales – Up 11.9% in April:
Pace should slow, and impact on residuals won’t be seen in market until 2016.

Used Retail Remained Solid as Reported by 7 Publicly Traded Dealer Groups:
The groups had 6.7% increase in same-store used units sold, 23rd consecutive quarterly increase in unit volumes.
Share: Reports Largest Used Value Losers and Gainers

Mike Hanley
Senior Editor reported on biggest price drops and increases during April 2015 for 2012- to 2014-model year vehicles featured on its search listings. For the second month in a row, prices for used Nissan Leafs sank more than any other used vehicle – down 4.7% ($708) in April. The Leaf has taken a big drop this year – down 14% in value versus the overall market being up 1% during that time. Land Rover’s Range Rover was No. 2 in price declines, down 3.3%.

Here’s the used vehicle market analysis for April

Even though Gasoline Prices Have Been Moving Up Lately to $2.65:
National average is still about a dollar less than it was a year ago.

Used Luxury Vehicle Prices Took Big Hit as the Largest Category with Declines:
Seven of the 10 models with steepest decrease in asking prices were from luxury brands.

Lincoln MKZ Had the Largest Gain During the Month of April:
An increase in $766 from the beginning of the month – or 3.1%
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