Price of used vehicles dropped in May 2014, Manheim index says

Article by Christian A., on June 9, 2014

Overall wholesale prices of used vehicles declined in May from April levels, although tags of used pickups surged, according to data in the Manheim Used Vehicle Value Index. According to Manheim, the surge in used-vehicle prices was thanks to a combination of modest hikes in wholesale used-vehicle supplies, favorable interest rates and franchise dealers focusing more on used-vehicle business.

It added that readily available retail financing at attractive terms has also allowed dealers to post good profits on the subsequent retail sale of their auction buys.

Ricky Beggs, editorial director at Black Book, remarked that used-vehicle prices usually start to slow down in April, but that trend didn’t occur this year since the harsh winter weather in the first two months of 2014 delayed several spring used-vehicle sales.

This prompted dealers to continue stocking used vehicles throughout April, expecting a sales surge from pent-up demand. The surge, however, only lasted until end of April as average price of 2008-2012 model-year vehicles dropped 0.4 percent in the May 1-June 1, period, according to Black Book data.

On the other hand, the average price of used full-sized pickups surged 0.6 percent in the period while average price used mid-sized pickups – like the Ford Ranger, Dodge Durango and Chevrolet Colorado -- -- jumped 0.5 percent.

According to Beggs, the surge in truck prices was thanks to demand from the housing, service and construction industries as well as to higher transaction prices for new pickups. He remarked higher new transaction price mean more room for differentiation, adding that depreciation is “not as great.” The Manheim index was 124.7 in May, down from 124.9 in April.

Topics: price

If you liked the article, share on:

Comments

Recommended

A racing team is claiming that it has managed to break the lap record in its category in the ever-demanding Nurburgring circuit in 2016 while driving a road-going Volvo S60...
by - May 27, 2017
Aside from the officially confirmed BMW 8 Series, the next generation BMW M5 (F90) is getting a lot of attention from the fans, enthusiasts and even potential customers around the...
by - May 27, 2017
Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
The largest gathering of Volkswagen and Audi cars in Europe is underway, and the German premium carmaker is displaying the third model of its G-Tron range at the 2017 Worthersee...
by - May 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries