Wholesale used vehicle prices rose for the fourth consecutive month in September, according to Manheim Consulting. That brought the Manheim Used Vehicle Value Index to 122.8, which represented an increase of 1.7 percent from its year-ago level. Wholesale prices reversed course and declined in the first half of October. Dealers entered September with low new vehicle inventory levels overall and shortages for some key models.One of the most important determinants of late-model used vehicle pricing is the amount of new vehicle inventory sitting on dealership lots. As such, September’s rise in wholesale pricing was no surprise. In coming months, however, new vehicle inventory levels are expected to build and wholesale supplies to rise on the back of higher off-lease volumes. That should put some downward pressure on used vehicle values. In addition, year-over-year comps will become more difficult since used vehicle values were boosted at the end of 2012 as a result of Hurricane Sandy.
For more information, contact Manheim Consulting at 800-777-2053; www.manheimconsulting.com.
