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ReprintsUsed-vehicle prices rose in February
Arlena Sawyers
Automotive News
March 6, 2009 - 2:52 pm ET
Wholesale used-vehicle prices rose for the second straight month in February, the Manheim auto auction company reported today. Manheim's Used Vehicle Value Index measured 105.5 last month, up from 101.7 in January but down from 108.1 in February 2008. Manheim chief economist Tom Webb attributed much of the increase in used-vehicle prices to a shortage of trade-ins created by slumping new-vehicle sales. About 60 percent of all new-vehicle sales generate trade-ins, Webb said. Not counting sales to rental companies and other fleet buyers, U.S. new-vehicle sales fell by about 610,000 units in the first two months of 2009 compared with the year-ago period, Webb estimated. The result: roughly 366,000 fewer trade-ins. "With forecasters continuing to lower new-vehicle sales forecasts for 2009, this supply dynamic is not going to change anytime soon," Webb wrote in an online commentary. Webb cited 2009 new-vehicle sales forecasts by Edmunds Inc. of 10.1 million units and by J.D. Power and Associates of 10.5 million units. The Manheim index began in 1995 with a value of 100. The index is adjusted for vehicle mix, mileage and time of year. |
You can reach Arlena Sawyers at asawyers@crain.com.
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