Manheim Reports Increase In Q1 Used Vehicle Values
Atlanta - Used vehicle sales for dealers went from good to better in the first quarter of the year with strong demand that held up through the harsh winter. The Manheim Used Vehicle Value Index - a measure of wholesale prices adjusted for mix, mileage and season - increased 2.2% during the quarter and was 3.3% higher than a year ago.
Tax refunds as of late March were up 3% from a year ago, which gave consumers extra money toward the purchase of used vehicles. Weather also helped boost values for used vehicles as rental car companies delayed de-fleeting. Winter storms caused more vehicle damage than normal, which led to increased insurance replacement demand or loaners while customer vehicles were repaired.
"Rental risk units flowing back into the wholesale market remained depressed in March after being at low levels in January and February," said Manheim Chief Economist Tom Webb. "The weather was the chief culprit in keeping these units out of the used car market. Rental car companies held onto their fleets longer than normal because demand was so high in the insurance replacement segment."
First-quarter pricing for vehicle segments included:
Compact Cars continued to be a weak spot in the market as consumers shifted to midsize cars and CUVs. Wholesale values for compact cars ended March down 0.1% from the same period last year.
Midsize Cars were a popular choice for consumers in the used car market, with pricing up 4.5% at the end of March on a year-over-year basis.
Luxury Car values fell 0.6% in March from the year-earlier period as more off-lease vehicles reached the market. The number of off-lease vehicles is expected to increase for the rest of the year.
Pick-ups and Vans both remained strong thanks to a recovering economy with new businesses needing work vehicles. Used vehicle values for pickups were up 9.8% in March and van values were up 5.3% compared to the same period last year.
SUV and CUV values rose 3.6% in March compared to a year ago, largely driven by the popularity of mid-size CUVs that provide a combination of space, utility and fuel efficiency.
Wholesale prices are expected to decline for the full year with an increased supply of used vehicles, Webb said. In the near-term, though, prices should remain strong. Massive recalls and a late Easter will likely delay rental units from flowing into the wholesale market.
"The end result so far has been higher prices and higher mileage vehicles in the wholesale used vehicle market," said Webb. "By the end of the year, we expect pricing to moderate as rental units eventually make their way into the wholesale market and the acceleration in off-lease units becomes more pronounced."
More Industry

Autos More Appealing
Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.
Read More →
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →