May marked a 0.8-percent decline in wholesale prices, and just one major market class showed a year-over-year gain in value during the month, according to Manheim’s Tom Webb, who offered his analysis in the latest Manheim Used Vehicle Value Index report.
Overall, the index was at 125.1 for May, compared to 126.1 in April.
“The year-over-year decline increased to 2.1 percent as the comparison was made against the Index's all-time high reading,” Webb explained.
“In May, the economy weakened and new-vehicle sales failed to meet expectations, but the volume of used vehicles retailed continued to rise, and dealership profits on those sales were strong,” he added.
Breaking the data down by segment, the only major market class to see an uptick in used values was the pickup category. Webb emphasized volume is tight for this class, particularly mid-mileage models. Meanwhile, compact car movements told a different story.
“Compact cars have the largest year-over-year decline in pricing, but that is simply because the comparison is against the record levels achieved in May of last year,” Webb stated. “Sellers are still achieving prices that they wouldn't have dreamed of three years ago.”
Sharing more analysis, Webb also pointed out that rental risk units, interestingly enough, had their strongest May on record for used prices, despite declining more than 3 percent from April.
“Auction volumes for rental risk vehicles continued to run well above year-ago levels. Average mileage was the same as April, but down 8 percent from May 2011,” he noted.
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