Used-vehicle prices eased

[rickaren]

Used-vehicle prices eased over last two weeks, report says

Posted Thursday, Oct 8, 2009, 12:42 pm in Employee News

Wholesale used-vehicle prices in September rose for the ninth-straight month, but have eased over the last two weeks because of declining retail demand, said Tom Webb, Manheim chief economist, the Automotive News reported.

“Some of this pricing has run its course,” Webb said during a conference call with analysts and journalists. “Unless retail demand becomes more robust, we might have a temporary fallback.”

The Manheim Used Vehicle Value Index released today stood at a record 118.5 in September, up 7 percent from a year earlier, the trade paper said. Manheim’s index measures monthly changes in used vehicle prices. It is adjusted for vehicle make, model mix and time of year, the Automotive News said.

During the last week of September and the first week of October, used vehicles’ wholesale prices dropped “more than expected,” Webb said in the story.

Retail used-vehicle sales by dealers last month dropped 14 percent, the largest year-over-year decline in any month this year, Webb said, citing data compiled by CNW Marketing Research. Webb said the decline came as part of the sales slowdown in the aftermath of the cash-for-clunkers program, the story said. (Automotive News)