After a historic plunge in April used-vehicle values, the market is tracking on a positive trajectory, according to Manheim‘s monthly used-vehicle value index, which rose to 137.0 in May from 125.8 in April.
Wholesale used-vehicle prices saw a 9% month-over-month increase in May, but are still tracking 1.9% behind the same prior-year period’s figures.
The used retail SAAR also showed signs of improvement in May, rising to 16.7 million units, an increase from 14.4 million units sold in April, although it was down 21.0 million units year over year, according to Cox Automotive estimates.
As pandemic fears start to wane, the automotive industry “seems to have bottomed in April,” according to the Manheim report. April also experienced a 13.6% decrease in consumer spending, the largest decline since 1959, as highlighted in the Manheim report.
While all vehicle segments saw seasonally adjusted price declines in May, luxury cars outperformed the overall market.
Originally published on Auto Finance News