Used vehicle prices were up over 50 percent since last year in April so far, a report from the Manheim Index says.
Manheim Market Report (MMR) numbers said prices increased at a steady pace over the first few weeks of April, increasing near 7 percent in the first 15 days of April.
Used supply has been tight, with estimated days’ supply below the normal levels at 33 days. The numbers for wholesale supply have been down to 17 days, with the normal supply being around 23.
The average price for rental risk units sold at auction in the first 15 days of April was up 25 percent year-over-year, the report says, with the prices going up 1 percent compared to March. The average mileage for those was sitting at 79,000 miles, which was a 54 percent boost compared to a year ago and up 18 percent since March.
Pickup trucks saw the biggest gains in price, while most other major segments of the market underperformed overall, the report says.
The report found that the consumer sentiment was up this month, with stimulus payments still in force and better employment conditions alongside tax refunds also helping out. There was also help from loan accommodation, along with better-than-usual loan performance and strong vehicle values.
The report finds that credit is somewhat tighter now than it was in February 2020 before the pandemic began.
And customers saw the buying conditions for vehicles improve in March, though the overall levels are still down year-over-year.
U.S. car sales have been up in Q1, with an eight percent boost, credited to the expansion of vaccines and what PYMNTS calls a “massive case of FOMO (fear of missing out).” That has led to vehicle shortages that only made the buying binge more fervent. J.D. Power data shows that the retail deliveries have hit 3.16 million vehicles during Q1, which was the second-highest total on record.
Selected by EFXA