Manheim: Used Vehicle Prices Increased Slightly in November
Price changes for selective market classes for Nov. 2013 versus Nov. 2012. Courtesy of Manheim.
Wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) started inching up in November after declining in October. According to Manheim Consulting, the Manheim Used Vehicle Value Index reading was 122.4 in November, which represented a 0.2% decline from a year ago.
In November, new vehicle inventory levels were higher than in previous months, wholesale supplies were rising, used retail gross margins remained narrow, and some manufacturers got aggressive with incentives to jump-start year-end closeout sales, says Manheim. Dealers have been quickly selling their wholesale acquisitions — and at a nice profit, despite those narrow gross margins.
According to CNW, used vehicle sales were strong — at least for franchised dealers who posted a 10% increase in unit sales. Total used unit sales, including independent dealers and private-party transactions, rose a more modest 4.5%. Preliminary numbers for manufacturer certified pre-owned sales in November showed a continuation of their record-setting path.
After slightly outperforming the market in October, luxury cars slipped back to the bottom of the pack in November, says Manheim. In addition, wholesale pricing for midsize cars has also underperformed the overall market in recent months, which is not surprising given the level of inventory and incentives in that segment in the new vehicle market. According to Manheim, the strong segments of the market continued to be pickups, vans and sports cars.
November Used Vehicle Index courtesy of Manheim.