The Manheim Used Vehicle Value Index hit a record high for the second consecutive month as wholesale used vehicle prices rose 1.1 percent month-over-month in June. The increase brought the Index reading to 129.3, which also represented a 2.5 percent increase from a year ago.
“The volume of transactions is up more dramatically than supply thanks to real demand from dealers and, in turn, consumers,” said Jonathan Smoke, chief economist for Cox Automotive. “Broadly speaking, the second quarter was supported by continued low unemployment and strong consumer confidence remaining near a 16-year high.”
Indicative of a stable U.S. economy, first quarter GDP growth was revised from the previous estimate of 1.2 percent to 1.4 percent. Experts predict the second quarter will likely come in stronger at a level of growth consistent with what the economy has experienced throughout this current expansion, according to Manheim.
All major used car segments-excluding compact and midsize car classes-were up from a year ago, with especially strong increases in pickups and vans. Second quarter wholesale pricing for all vehicle segments included:
- Compact Cars-Typically one of the weakest segments, experienced some relative strength in comparison to the midsize car class with prices down a modest 0.4 percent
- Midsize Cars-The weakest segment compared to last year with a 2.1-percent decline
- Pick-ups and Vans-Experienced the most significant increase of all car classes, with pick-ups climbing 7.5 percent versus last year, and vans following closely behind at 7.4 percent
- SUVs and CUVs-Increased 2 percent from last June, slightly weaker than the overall market
- Luxury Cars-Values increased 1.4 percent over the same period last year and remain relatively weak compared to the overall market. The small gain can partially be attributed to ongoing efforts for more efficient remarketing of cars in this class.