The Manheim Used Vehicle Value index hit a record high for the second month in a row. Wholesale used vehicle prices (on a mix-, mileage, and seasonally-adjusted basis) rose 1.1 percent month over month in June, bringing the index reading to 129.3. That’s a 2.5 per cent increase from last year.
“The volume of transactions is up more dramatically than supply, thanks to real demand from dealers and, in turn, consumers,” said Jonathan Smoke, chief economist for Cox Automotive. This is supported by continued low unemployment and strong consumer confidence, he added.
All major car segments — excluding compact and midsize car classes — were up from a year ago. Pickups and vans had especially strong increases.
According to Smoke, “strong retail demand for recent model year used vehicles is encouraging dealers to buy more vehicles at auction and the increased demand is more than offsetting the higher supply.”
Despite the strength in wholesale used vehicle prices, new vehicle sales are down two per cent from last year. Except for light truck sales which were up four per cent year over year, much of the decline can be attributed to a downturn in car sales, which were down 13 per cent.