Report Shows Strong Year-End Close For Used Car and Truck Market

Wholesale used vehicle values increased in the fourth quarter by nearly 2 percent to finish the year slightly higher than last year as consumer demand for used car and trucks remained strong.

According to the Manheim Used Vehicle Value Index, a measure of wholesale prices adjusted for mix, mileage and season, ended the year at 123.9, a 1.8 percent increase from a year ago and 2.1 percent higher than the third quarter.

Helping to support this trend, according to Manheim, is an improving job market and attractive financing .

The strongest demand for used vehicles in the fourth quarter was in the $13,000-$15,000 range, a higher sweet spot than a year ago. Sales of certified pre-owned vehicles, late-model vehicles still backed by a warranty, also hit record numbers in 2014.

Fourth-quarter wholesale pricing for vehicle segments included:

• Compact Car prices were down 1.1 percent in December, compared to the same period last year, as consumers moved to CUVs and mid-sized cars.
• Midsize Cars had been one of the weaker segments during the year but saw values end December 2.2 percent higher than the same period last year.
• Luxury Car values fell 0.4 percent on a year-over-year basis, holding their prices despite an increase in supply from off-lease vehicles.
• Pick-ups and Vans remained the strongest segment with pick-ups up 6.1 percent and vans up 3.1 percent on a year-over-year basis. Often purchased for business use, demand for these vehicles has increased during the year.
• SUV and CUV also continued to be a popular segment, up 2.8 percent in December compared to the same period last year. Consumers have been moving to compact and mid-size CUVs, which offer a balance of room and fuel efficiency.

Category: Featured, General Update, Vehicles