Page 8 - GIADA-April2017

MARKET HIGHLIGHTS

February Wholesale Prices Remain on

Stable Path

BY AUTO REMARKETING STAFF

Cox Automotive chief economist Tom models — which in some cases are taking sports cars in February was down more
Webb explained why February’s wholesale the amount of days to turn not seen in al- than any other major segment. This might
price data reinforced a possible market most eight years. have been one area where reduced tax re-
moniker — stability. funds did have an impact.”
Pricing trends by market class
Manheim reported on Tuesday that whole- Rental market update
sale used-vehicle prices (on a mix-, mile- Price declines and rises split evenly within
age-, and seasonally adjusted basis) fell by the six vehicle segments Manheim tracks Manheim reported that the volume of rent-
0.2 percent in February. However, Webb for its monthly update, again showing the al-risk units actually sold grew during the
pointed out that given a sharp decline in cut between cars and trucks. first two months of 2017, even though con-
pricing in February of last year, the Man- version rates were a “little weak,” according
heim Used Vehicle Value Index showed a Each of the three segments to post price to Webb.
year-over-year gain of 1.1 percent as the gains in February were in the truck category
index reading stood at 124.6 for February. as prices for pickups rose 6.5 percent, prices “Given that new-vehicle sales into rental
for vans climbed 4.9 percent and prices for were down during this period, it suggests
“Although wholesale prices rose in only SUVs and CUVs moved 2.0 percent higher. that the rental companies were getting their
one month out of the last seven, stability fleets right-sized,” he added.
remains the watchword for used-vehicle Conversely, prices in the three car segments
values given that all of the declines were all softened in February, led by luxury cars Manheim indicated a straight average of
small,” Webb said in his commentary that (down 2.2 percent) and closely followed by auction pricing for rental risk units in
accompanied the latest index update. midsize cars (down 2.1 percent) and com- February generated a 5-percent lift from
pacts (down 1.6 percent). a year ago.
“In the face of heavy new-vehicle inventory
and incentives, the stability of used vehicle “Although it remains the case that pricing “But much of that reflects mix shifts and
values is a credit to the retail market that for trucks, CUVs, and vans remains up mileage changes as well as a temporary
continues to provide dealers the ability to year-over-year while cars are down, the weakness in the market last year,” Webb
quickly retail wholesale acquisitions at rea- weakest of the car segments (compacts) said.
sonable grosses,” he continued. has actually tracked the overall market the
past three months,” Webb said. “It is risky “Our index of rental risk pricing that ad-
Webb’s observer colleagues from Cox Au- to say that compacts reached their bottom justs for broad changes in mix and mile-
tomotive — Kelley Blue Book’s Alec Guti- because there have been so many false bot- age was down both sequentially (1.2 per-
errez and Autotrader’s Michelle Krebs — toms over the past couple of years, but there cent) and year-over-year (3.8 percent),”
as well as Jessica Caldwell from Edmunds are promising signs. he continued.
— recently discussed the new-vehicle
market’s impact on potential used-vehicle “On a non-seasonally adjusted basis, Manheim went on to mention the average
sales performance, too. This Auto Remar- sports cars were the only segment that mileage on rental risk units sold at auction
keting report highlighted how those ana- was up, but the February lift was much was 39,100 miles, “which is very close to
lysts noted challenges franchised dealer- less than normally occurs,” he continued. what it has averaged since the summer of
ships face in finding buyers for their new “As such, the seasonally adjusted price for last year,” Webb said. n

6 | GIADA Independent Auto Dealer APRIL 2017