There was a 1% drop in wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) last month, bringing the Manheim Used Vehicle Value Index to 119.2, a 5.5% year-over-year decline.
The decrease wasn’t surprising or alarming, even as April was the fourth sequential month wholesale used-vehicle values decreased. In total, prices have dropped 3.9% since December. More pressure on wholesale values is expected as the retail market continues to strengthen.
Last month also saw the SAAR for new cars and light-duty trucks slide below 15 million for the first time since October 2012. Estimators still anticipate yearend sales to hit about 15.5 million units, and “the recent decline in consumer confidence, already low savings rates, and the overhang of possible negative regulatory and policy changes suggest that manufacturers and dealers may have to become more aggressive in pushing the market in order to reach their sales targets,” according to Manheim’s website.
According to CNW, used-car sales stayed relatively flat in April, rising less than 1%. Used retail sales at dealers (save private-party transactions) dropped 1%. However, total sales in the first four months of 2013 were up 5%, with dealer sales rising 7% — even as consumer spending was sluggish.
