Used-vehicle values set a record for the third straight month in August, bringing the Manheim Used Vehicle Value Index to 163.7, a month-to-month increase of 3.64% and a 15.8% increase from a year ago.
The August used retail seasonally adjusted annualized rate (SAAR) is estimated at 20.3 million, a 0.5% MoM decrease and a year-over-year decrease of 1.93%. Used-vehicle inventory continues to be low, sitting at 38 days’ supply by the end of August compared with the normal 44 days, and contributing to recovering used car prices.
Prices on luxury cars and pickup trucks continue to outperform the overall market while other major segments underperformed in August.
Continuing the trend seen in recent months, total new-vehicle sales in August declined 19% YoY. The August SAAR was 15.2 million, a 0.6 million increase from July, but a 1.9 million decrease from the same reporting period in 2019.
Consumers’ plans to purchase a vehicle in the next six months reached a 10-year low in August as consumer confidence declined 7.5% for the month and 37% year-over-year, according to the Conference Board, a global nonprofit research organization.
Continued growth in new home sales, on the other hand, suggests a shift in consumer spending priorities. “New home sales are less encumbered by inventory problems and better reflect the boost to housing demand caused by historically low mortgage rates. Demand for new homes may also be boosted by growing interest in suburban, rural and second homes,” read the Manheim report.
Auto Finance Summit, the premier industry event, returns October 20-22, 2020, as a virtual experience. The virtual experience will offer the quality networking and education of past events, all through an online platform. To learn more about the 2020 event and register, visit www.AutoFinanceSummit.com.