Used vehicle prices continue to drop in September

Article by Christian A., on October 10, 2011

Last month, the Manheim Used Vehicle Value Index was still sliding but according to Manheim auction firm’s chief economist Tom Webb, it will “ease” downward in the near term. He explained that used vehicle prices will drop and that it’s likely that the index will fall to about 120 in the fourth quarter of 2011.

However, he doesn’t believe that it will decline to as low as 115. In a recent quarterly conference call, Webb told analysts and journalists that prices will stay “high’ by historical standards. In September 2011, the monthly index was 122.9.

In September 2010, the reading was 118.9, says Autonews. In August 2011, the index was 123.7. After peaking at 127.8 in May, the index has been steadily falling. In January 1995, Manheim’s index started at 100. It gets adjusted depending on vehicle mileage, model mix and time of year. It should also be mentioned that ADESA Auctions posted average used vehicle prices of $9,742 in September.

This is a 1.4% decrease from August and a 1.0% drop from September 2010. ADESA’s calculations now indicate that big SUVs have an average price of $12,584 in September, higher by 2.5% compared to August but a 10.2% drop from September 2010.

According to Tom Kontos, ADESA’s vice president of customer strategies and analytics, the prices of the large SUV have fallen considerably compared to last year since their prices were affected earlier this year when the prices of gasoline neared $4 per gallon. Kontos said that the prices are now higher but they haven’t reached the point wherein they’re break-even with 2010 prices.

If you liked the article, share on:

Topics: sales

Comments

Recommended

Last year was probably one of the busiest years for the European New Car Assessment Programme, with a total of around 70 cars tested. But amongst that huge pack of...
by - January 16, 2018
For the longest time, women in Saudi Arabia were restricted from doing what men were able to do freely. And one of the most pressing issues was driving. In the...
by - January 16, 2018
Automakers that have teamed up with Formula 1, like Mercedes-AMG, develop the coolest road-going supercars just like the Project One. Aston Martin and Red Bull, on the other hand, have...
by - January 15, 2018
There is nothing more exciting happening this month than the 2018 Tokyo Auto Salon - especially with all the concepts that are being uncovered. Apart from the Toyota GR Super...
by - January 15, 2018
The very first time we ever saw Bentley’s SUV, the Bentayga, was back in September 2015 when it came out with the impressive W12 engine. A year after that, it...
by - January 15, 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