Used-vehicle depreciation slowed modestly in June compared to May’s more rapid pace, the firm reported this week, with prices for vehicles up to eight years in age falling 2.5% on a monthly basis in June.
Used-vehicle values remained in line with expectations during the second quarter, according to Manheim.
Vehicle depreciation is expected to increase in 2015 as a larger used-car supply and off-lease volumes place pressure on retention rates, according to a report from Black Book and Fitch Ratings.
Stronger pricing activity and fuel price trends highlighted a better-than-expected 2014 for used-vehicle prices, which outperformed 2013 levels and beat Black Book’s initial expectation.
Manheim says the more than 2% decline in wholesale prices 'appears to be part of a healthy overall market.' It allows dealers to turn inventory more quickly, officials say.
Strong consumer demand and attractive financing drove up both volume and values for used cars during the second quarter, Manheim reports.
The average price of a used vehicle dipped slightly in May, according to Black Book. Analysts with the firm said they expect higher depreciation between now and the end of the year.
Mark Dubois talks about finding affordable vehicle inventory in the buy here pay here (BHPH) industry. Mark discusses networking, advertising, and recycling inventory as a way to keep your vehicle inventory costs low.
media brand
The secure and easy all-access connection to your content.
Bookmarked content can then be accessed anytime on all of your logged in devices!
Already a member? Log In