Used-vehicle values outpaced expectations in January, according to the Manheim Used Vehicle Value Index. The index clocked in at 141.6, a 4.6% year-over-year increase and record high.
Originally, used-vehicle values were expected to tick up only 1%, Jonathan Smoke, Cox Automotive’s chief economist, told Auto Finance News back in December. The increase was largely attributed to all major vehicle segments posting a YoY price increase, with luxury cars outperforming the overall market.
Estimated used-retail SAAR is also expected to increase 4.6% to 20.7 million units, up from 19.8 million units in January 2019. Used-retail SAAR also increased on a month-over-month basis, compared with the 20.1-million-unit rate of December 2019.
On the new vehicle side, January’s SAAR was 16.8 million units, an increase from 16.7 million units in the same prior-year period. Additionally, new-vehicle inventories were under 3.5 million units. By comparison, new-vehicle inventories clocked in under 4 million units for the past eight months, according to Manheim data.
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