Used-vehicle prices ease in April, index shows
DETROIT -- For the first time in six months, used-vehicle prices in April stopped their upward trajectory and showed signs of easing, according to a closely followed gauge released today.
The Manheim Used Vehicle Value Index in April stood at 126.1, down slightly from 126.2 in March and down from 126.6 in April 2011.
Last month’s reading was the first time since October that the index showed a monthly decline. October 2011’s index reading of 122.8 was also the lowest of any month last year. The record index reading of 127.8 was reached last May.
The increase in used-vehicle prices is attributed to low used-vehicle inventory and high gasoline prices, which boosted demand for fuel-efficient vehicles.
In April, several analysts predicted that used-vehicle prices would follow seasonal patterns and peak in late-April or during May, and start to gradually fall in June.
The Manheim index measures wholesale used-vehicle price changes and is adjusted for time of year, mileage and vehicle model mix.
In other used-vehicle news, CNW Marketing Research of Bandon, Ore., reports that overall used-vehicle sales of 3,792,604 in April rose 40 percent from the previous month and 7 percent from sales in April 2011.
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