Wholesale used-vehicle prices increased 3.2% in February, bringing the Manheim Used Vehicle Value Index up to 135.2.
In addition, more-affordable vehicles, such as mid-sized cars, led the way in value appreciation — a continuation of a 2018 trend.
Used-vehicle sales volume was also on the rise year over year, at a rate of 2%. Manheim estimates the SAAR to increase to 39.4 million compared with 38.6 million last year.
Looking ahead, Manheim remains positive on used vehicle sales.
“Our four-year forecast is that we’re going to see a flat market for used vehicles,” Zo Rahim, manager of economics and industry insight at Cox Automotive said. “But a flat market at 39.5 [million] means that it’s tied with 2018 as the best year for used vehicle sales since the recession.”
Prices, too, should see an increase in the near term, Rahim said, due to constrained supply. “That bodes well for prices,” he said.
As for new vehicle sales, February posted a year-over-year decrease of 2.4%. Moreover, the SAAR experienced a decline to 16.5 million. Light trucks outperformed cars in February, up 1.6% year over year.
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