Page 20 - On The Move - Volume 16, Issue 4

holesale used vehicle prices (on a mix-, mileage-, and After seeing stability in July in weekly
Manheim Market Report (MMR) prices,
Wseasonally adjusted basis) increased 0.62% month- depreciation returned in August but at
a very low level. Three-year-old vehicle
over-month in August. This brought the Manheim Used values in aggregate were down 0.5%
for the month, when prices normally
Vehicle Value Index to 141.3, a 1.2% increase from a year ago decline by at least 1%. As a result of low
depreciation, prices in aggregate in non-
and a record high for the Index.
luxury remain higher than the beginning
of the year. Last August saw price
appreciation, which is why the year-over-
year comparison in values is the weakest
in more than two years.

On a year-over-year basis, major market segments saw weak seasonally
adjusted price gains in August. Luxury cars and pickups outperformed
the overall market, while most other major segments underperformed
the overall market. Last year continues to be a tough comparison for
both prices and sales as we experienced an abnormal increase in
consumer demand during the summer driven by tariff fears and rising
interest rates. Despite the tough comparison, August reflected a much
stronger than normal used retail market for a summer month.

Positive retail results for vehicle sales year-over-year. According to
Cox Automotive estimates, total used vehicle sales volume was up
1.8% year-over-year in August. We estimate the August used SAAR
to be 39.8 million, up from 39 million last August and up slightly from
July’s 39.7 million rate. The August used retail SAAR estimate is 20
million, up from 19.3 million last August and flat month-over-month.

August total new vehicle sales were up 11% year-over-year, with one
more selling day compared to August 2018 and included Labor Day

Jonathan Smoke
Chief Economist
Cox Automotive
Twitter - @smokeoncars

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