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Insider Used Car Market Data

  • 2 min read

Manheim Auto Auctions recently held a conference call discussing the current state of the automobile market, analyzing trends and implications for various stakeholders. Despite concerns about inflation and high interest rates, consumer spending remains robust, and sentiment is on an upward trend, which bodes well for the automotive industry.

Improving Retail Supply
The retail supply of both new and used vehicles is showing signs of improvement. While increasing the supply of new cars is relatively easier, the used car inventory is also seeing enhancements, albeit from a historically low starting point.

Wholesale vehicle values and depreciation trends
The conference call highlighted a significant annual decrease in wholesale vehicle values, marking one of the largest declines in history. However, a closer look reveals that the market is still above the long-term trend line, indicating that the current dip is more of a correction from previous highs than a drastic deviation.

Consistent Depreciation Across Vehicle Ages
Depreciation rates across different ages of vehicles remain relatively consistent. Whether it’s one-year-old cars or ten-year-old cars, the depreciation trends show parallel lines, suggesting a uniform decline in value regardless of age.

Impact of Mileage on Vehicle Values
An intriguing observation relates to the mileage of vehicles, particularly those from rental fleets. Over the years, rental companies have extended the mileage limits on their vehicles, contributing to a surge in the average mileage of used cars on the market. This shift has implications for both dealerships and consumers in terms of vehicle pricing and inventory composition.

Top Volume Vehicles and Transaction Prices
The top-volume vehicles in the market, including Toyota Corolla and Nissan Altima sedans, along with the Ford Explorer SUV, are predominantly priced in the teens. This indicates a trend towards affordability in the used car market, with only a few exceptions, such as higher-end SUVs like the Ford Explorer.

Outlook for the Used Car Market
Looking ahead, Manheim Auto Auctions predicts another potentially down year, with a projected decrease of around four percent. Despite this, their comprehensive overview provides valuable insights into the dynamics of the used car market, drawing from their extensive transaction data and market expertise.

Conclusion: Insights from Manheim Auto Auctions
As the largest transaction source for used vehicles, Manheim Auto Auctions offers unparalleled insights into the automotive industry. Their analysis encompasses various perspectives, from dealerships to consumers to fleet operators, providing a comprehensive understanding of market trends and future outlooks.

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