The Manheim Used Vehicle Value Index established a new record to begin 2020.
Cox Automotive reported that wholesale used-vehicle prices (on a mix-, mileage- and seasonally adjusted basis) increased 0.39% month-over-month in January. That movement pushed the index to a new record high of 141.6, representing a 4.6% jump from a year earlier.
Following a normalizing trend in weekly Manheim Market Report (MMR) prices at the end of 2019, Cox Automotive indicated that January produced steady prices as expected. Overall, analysts found that 3-year-old vehicle values ticked down by 0.2% for the month.
Analysts added values of non-luxury vehicles in aggregate remained unchanged while values of luxury vehicles edged 0.7% for the month, “which is in line with historical performance.”
Cox Automotive added in the latest index that, “This January’s normal trend for prices was a marked improvement over last year’s declines.”
On a year-over-year basis, analysts discovered most major market segments saw seasonally adjusted price increases in January.
“Luxury cars outperformed the overall market, while most other major segments underperformed the overall market,” Cox Automotive said.
Specifically, those luxury values jumped 6.1%, according to Cox Automotive, which reported the other four segments that moved higher year-over-year included:
— SUV/CUV: up 4.2%
— Midsize cars: up 2.8%
— Compact cars: up 2.2%
— Pickups: up 1.4%
Meanwhile, van values softened 1.1% year-over-year.
Cox Automotive also mentioned rental-risk pricing increased in January.
Analysts reported the average price for rental risk units sold at auction in January climbed 4.4% year-over-year and 1.0% month-over-month. Analysts added that average mileage for rental risk units that went down the lanes in January came in at 51,300 miles, marking a 9% rise compared to a year ago but a 0.3% dip month-over-month.
Source : AutoFinanceNews
