Wholesale Used Vehicle Prices Expected To Level Off Or Decline

The used vehicle market is strong but could be reaching a peak as used vehicle prices continued to rise in June, possibly as a result of consumer concerns over rising interest rates and the impacts of tariffs, analysts said.

In a quarterly conference call on the used vehicle market, analysts Jonathan Smoke and Zo Rahim, both of Cox Automotive, explained industry trends and recent changes. The call coincided with the monthly release of Manheim Used Vehicle Value Index, which reflects how much dealers are paying for used vehicles at the wholesale level.

In June, the index rose for the third consecutive month after strong increases in April and May, Smoke said. Used vehicle prices increased 0.53%, from May, and were up 4.3%, from June 2017, said Rahim, adding that the index of 134.9 rose to the highest level since October. Wholesale vehicle prices are expected to level off at best, Smoke said, and might decline over the next few years, but the used car market is expected to remain strong.     MORE

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