Fresh Outlook For Used Car And Van Buyers

In a piece of better news for dealerships, van hire and car hire agencies that rely on used car markets, the prices, which have shot up in recent months, have finally started to trickle down or at least at the wholesale level.

The Manheim Consulting’s index for used car values dipped in October, which is the index’s first decline since December 2008. In the months since that December low, the index has climbed steadily, reaching an all-time high in September.

However, many believe that it just has to do with the season, as autumn typically sees a reduction in used car sales. Factoring in a seasonal adjustment the index dipped 0.9% overall in October. Without that adjustment, it dropped 4.4%.

“Given that wholesale prices had reached record levels, October’s pullback was neither unexpected nor alarming. In fact, if there is no free fall in values or a plunge in conversion rates, the moderation in pricing should be welcomed, ” Manheim said.

The increase in new car sales has brought in more fresh trade-ins. That has increased the stock of used cars. With used car sales still soft, inventories have increased which is leading to lower prices.This combined with lower used car sales has meant a high inventory, and lower prices.