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.

If you liked the article, share on:

Topics: price

Comments

Recommended

Infiniti will commence sales of the new 2019 Infiniti QX50 in the spring, with a starting price of $36,550. But before the big launch, Infiniti has introduced a new reservation...
by - January 18, 2018
BMW fans may be surprised with what the car manufacturer’s boss Robert Irlinger said in a recent interview with Autocar during a recent media meeting. And this is the fact...
by - January 18, 2018
Currently, there aren’t any Lexus convertibles out in the market, but it seems like it won’t be too long until we see one again. This is because Toyota’s premium brand...
by - January 18, 2018
Hyundai revealed to the press that it doesn’t plan on breaking any kind of top speed records with its newest N performance line. That is because the brand mainly focuses...
by - January 18, 2018
There are so many aftermarket tuners out there that have been turning out pretty amazing Land Rover Defenders. It’s their popularity perhaps that has urged the automaker itself to join...
by - January 18, 2018
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