Used vehicle prices signal stability for 2017
The Manheim Used Vehicle Value Index – a measure of wholesale prices adjusted for mix, mileage and season – came to a reading of 124.1. This is an increase of 1.3 percent from a year ago.
ointing to the continued stability of the market regarding used vehicle retail sales, total used retail sales in January and February – including private party transactions – were up 5 percent.
Growing on this strength, franchised dealer sales were up 6 percent and independent sales were up 7 percent according to the National Automobile Dealers Association (NADA).
Additionally, the credit and lending environment remains favorable.
Despite the continued overall stability, the new vehicle environment continues to pressure used vehicle values, and franchise dealers started both February and March with more than four million new units in stock.
A variety of major incentives were applied to that inventory in February and the industry achieved a seasonally adjusted annual selling rate (SAAR) of 17.5 million.
Available incentives were just as large in March, but sales slowed and resulted in a SAAR of 16.5 million – the lowest in just over two years. ■