Used-Car Value Predictions
Manheim’s Used Vehicle Value Index hit its highest level ever in January: 124.9.
Used-car values have exceeded 100 on the Manheim Index since the start of 2009, surpassing 120 six times last year.
Strong auction prices have lowered lenders’ loss severity and have enabled lessors to offer vehicles with higher residual values. The key, though, is trying to predict how much longer values will stay so high.
True, new-car purchases are starting to pick up, which should put some pressure on used-car sales. On the flip side, off-lease volume is slated to remain low for the next couple years.
What’s your expectation for used-car values? At what point this year (or next) might auction prices start to decline steadily?
My prediction for the Manheim Index at yearend: 116.2.
Post your guesses below.
