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Used Vehicle Prices Climb Higher As Sales Pace Slows
The higher prices at used retail reflect strong wholesale values earlier in the spring, particularly for older, more affordable vehicles.
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SEARCHMENUSEARCHThe higher prices at used retail reflect strong wholesale values earlier in the spring, particularly for older, more affordable vehicles.
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Wholesale values as of the second week of the new year are holding stable, which is the inverse of the heavy depreciation that late 2019 saw.
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The winner is announced at the annual Conference of Automotive Remarketing, which this year will be held on March 24-25, 2020 at Caesars Palace Las Vegas.
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Overall car segment values decreased 0.26% last week, compared to 0.68% the week before. Overall truck segment values decreased 0.44% last week, compared to 0.71% the week before.
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The outlook for the 2020 used market is positive, at least according to three remarketers from three fleet management companies.
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Fleet data collected in 2019 found that depreciation expenses for most vehicles went down in 2019.
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Five of the most widely used vehicle segments among light-duty fleets saw relatively low depreciation in 2019.
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Quanta Services has partnered with Ritchie Bros. to develop a new online inventory management system that will help improve how the company redeploys assets across its operating locations and subsidiaries.
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The wholesale market experienced above average depreciation last week, but there is the sentiment among remarketers that values may begin to stabilize soon.
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Former fleet vehicles sold by KAR Global's ADESA remarketing unit fell 3.2% in value in November from the prior month but remain 3% ahead of a year ago partly due to a softening wholesale market.
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CUV/SUVs saw year-over-year declines to their wholesale values, but are still performing well due to continued demand for these segments and cheap gas prices, but an inflection point is approaching.
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