CBT News, August 6, 2021 – On today’s show, Jim Fitzpatrick is pleased to welcome Jonathan Smoke, Chief Economist for Cox Automotive. He discusses the Manheim Used Vehicle Value Index and the used-vehicle market. The Manheim index tracks what’s selling at Manheim. The monthly value report reflects the average price dealers are paying for used vehicles at auctions. It allows analysts to see, what car dealers are paying for their most expensive inventory.
The July Manheim Used Vehicle Value Index was recently published and shows that used-vehicle values are finally coming down off a record high. In the latest report, prices also continue to be up substantially year-over-year, and that’s across all major segments. However, prices in July were down, following most segments being down in June, says Smoke. As a result, all prices are well-off of the peak year-over-year increases, they had in the spring.
Smoke says they are seeing some important shifts in how the segments have been performing. Pickup trucks have risen the most over the past year, and are now falling the most. Luxury vehicles are holding their value quite well. Smoke says, what they’re seeing is, segments that increased the most over the last year in the spring, are falling the most now. Smoke adds, the industry had the most extreme imbalance ever seen this past spring.