There appeared to be a bit of a dichotomy in the wholesale vehicle market last month.
The Manheim Used Vehicle Value Index reached a record high (141.3) and was up 1.2% year-over-year. Mix-, mileage- and seasonally adjusted, there was a 0.62% bump up in wholesale prices from July.
But the comparison to last August is a bit “tough,” given the macro-economic dynamics at play in summer 2018, the company said in analysis accompanying its latest index report.
The weekly Manheim Market Report prices once again showed depreciation, albeit very slight, analysts said. This following a steady July for weekly MMR movement.
“Three-year-old vehicle values in aggregate were down 0.5% for the month, when prices normally decline by at least 1%,” analysts said in the report. “As a result of low depreciation, prices in aggregate in non-luxury remain higher than the beginning of the year.
“Last August saw price appreciation, which is why the year-over-year comparison in values is the weakest in more than two years.”
Breaking it down by segment, luxury cars had the most significant year-over-year price growth (1.8%), followed by pickups (up 1.4%). Midsize cars were up 0.2%.
Compact cars (down 2.7%), SUV/CUVs (down 0.1%) and vans (down 1.2%) showed year-over-year price declines.
“Luxury cars and pickups outperformed the overall market, while most other major segments underperformed the overall market,” analysts said. “Last year continues to be a tough comparison for both prices and sales as we experienced an abnormal increase in consumer demand during the summer driven by tariff fears and rising interest rates.”
Breaking down the price data further, auction prices for rental-risk units climbed 0.1% year-over-year and 1.2% month-over-month. Mileage on these vehicles climbed 10% year-over-over and were down 3% sequentially.