Used-car price decline picked up steam in June
DETROIT -- The decline in used-car prices picked up steam in June.
The Manheim Used Vehicle Value Index was calculated at 123.4 in June, down from 125.1 in May and down from 127.5 last June, auto auction company Manheim said today.
The 1.4 percent drop in June from May was the steepest decline of the year. But Tom Webb, Manheim’s chief economist, said used-car prices are not falling dramatically. Rather, he said, they are in an “orderly retreat.”
The decline in prices “should still leave buyers and sellers in a comfortable position, retail markets unperturbed and profit opportunities intact,” Webb said in a conference call today. He noted that the declining price trend will most likely continue into the near future.
Pickups are the only class of vehicles that saw an increase in used prices in the past three months. The class has outperformed all others in the index for the past six months and over the past year. Compact cars remain the weakest segment among used cars, despite long-term growth.
Webb said he’s optimistic that the index will no longer see the significant highs and lows it has seen in the past.
“It is my hope, and partly my belief, that the rate of change, both up and down, will in fact moderate, vs. those big swings that we showed during the volatile years,” Webb said.
The Manheim index measures wholesale used-vehicle price changes and is adjusted for time of year, mileage and vehicle model mix.
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