Used-vehicle prices in June declined when compared with the previous month
By Andrew C., 30 Aug, 2010. 0 Comments
The Manheim Used Vehicle Value Index recorded increases year over year but after six straight months of an upward movement, used-vehicle prices in June declined when compared with the previous month.
According to Manheim‚ monthly figures, the index stood at 120.2 in June, down from 121.0 in May and up from 114.1 in June 2009. Tom Webb, Manheim‚ chief economist, said that used-vehicle prices fell due to a ceiling made by new-vehicle prices. Concerns about the economy and unemployment also resulted to a leveling of vehicle demand that had an effect on used-vehicle prices. Webb revealed that essentially, fewer current-year and year-old used vehicles are offered for wholesale purchase due to a reduction in the number of rental cars repurchased by manufacturers and a drop in company-owned vehicles re-entering the market. He said that these late-model used vehicles affect the pricing trends for the wholesale market. During a conference call, Webb told analysts and reporters that the lack of volume has ‚Äúweakened that transmission mechanism.‚Äù He added that low new-vehicle inventory has helped in convincing dealers that higher new-vehicle transaction prices fueled the rise in used-vehicle prices and profits this year. Webb explained that dealers tend to focus on ‚Äúa 100-day supply of new vehicles on the lot‚Äù rather than selling used vehicles.
[via autonews - sub. required]
Latest Auto Shows
