Used Vehicle Sales Weaken in January, Reports Manheim

Wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) rose 0.5% in January. According to Manheim Consulting, the Manheim Used Vehicle Value Index reading was 122.3 in January, which represented a 0.9% decline from a year ago.

In January, new cars and light-duty trucks sold at a seasonally adjusted annual rate (SAAR) of 15.2 million in January, down from 15.4 million in December and 15.6 for the full year of 2013. Dealers, manufacturers and analysts all cited extreme weather conditions during January as a contributing factor to weaker-than-expected sales, says Manheim.

According to CNW, used retail sales in January were down 0.7%, but that was against a strong year-ago pace. And franchised dealers were able to post a 2.4% gain in sales during January, despite weather-related headwinds. CPO sales again played an important role.

When measured as a straight average, prices for end-of-service rental risk units fell in January relative to December, but prices were up after adjustments for changes in mix and mileage, says Manheim.

Off-rental volumes were up from December’s low level, but down from a year ago. New vehicle deliveries into rental in January were off more than 15% due to delays in some shipments, says Manheim. As those deliveries get back on schedule in February, so too should off-rental volumes.

The average mileage on rental risk units sold at auction increased by 10% year-over-year to more than 40,000 miles, the highest level since February 2011, according to Manheim.