The Manheim used-vehicle value index for the month of August rose to 141.3, a year-over-year increase of 1.2% and a record high. The index was propped up by lower-than-normal depreciation.
Prices for 3-year-old vehicles declined in aggregate 0.5%, under the expected average of 1%. As a result, August reflected a “much stronger” used-retail market compared with other summer months, according to the report.
August used-vehicle sales increased 1.8% year over year, with the SAAR coming in at 39.8 million units, compared with 39 million in the prior-year period.
Meanwhile, new-vehicles sales were up 11% year over year, and the SAAR increased to 17.0 million units, compared with 16.9 million units last August. New-vehicle inventories, on the other hand, were under 4 million units for the fourth straight month — their lowest level since August 2016.
However, looking forward, the percentage of households planning on purchasing a vehicle in the next six months improved to its best level in three months, the report noted.
By segment, compact cars posted the largest decrease in price year over year — down 2.7% — followed by vans at 1.2%, and SUVs at 0.1%. Conversely, luxury cars’ price increased 1.8% year over year, followed by pickups at 1.4%, and midsize cars at 0.2%.
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