ATLANTA -

While strong used-car prices likely comes as good news for folks selling used vehicles in the wholesale markets, there are also a few positive implications for dealers on the retail side.

According to the latest Manheim Used Vehicle Value Index report, wholesale prices were up 1.1 percent year-over-year in July (on a mix-, mileage- and seasonally adjusted basis), and the monthly reading for the index was at 124.1.

In the report, Cox Automotive chief economist Tom Webb explains what these “modestly higher” used prices mean for details on the retail side.

“The continued strength in wholesale pricing reflects a retail used-vehicle market where dealers are enjoying higher throughput, achieving ever-greater efficiencies, and still growing F&I income,” Webb said.

“Although new-vehicle transaction prices continue to rise, incentive activity (both transparent and opaque) is on the rise. This likely left the new-vehicle market net neutral with respect to its impact on wholesale pricing in July,” he continued. “This benign environment may be negatively impacted by past and expected exchange rate movements and shifting global demand.”

Of course, not all segments of the wholesale space were showing gains in July.

July was fourth straight month of declines in rental-risk auction prices (“adjusted for board shifts in market class and mileage,” Webb said).

On an adjusted basis, values for these cars fell 4.3 percent year-over-year. Unadjusted, they were off 11.7 percent.

What’s more, July marked the first time in 45 months — nearly four years — that average prices for these cars were below $14,000, Webb said.

As for supply of these cars, he added: “Auction volumes for rental-risk units in July continued to exceed their year-ago level, but were in line with the pace of 2013 and 2012. New-vehicle sales into rental increased less than 1 percent in July, resulting in a year-to-date gain of 5.9 percent.”

Breaking down dealer and commercial consignment, prices increased on a straight average for both groups.

“During the month, the average price for dealer-consigned units defied seasonal forces and increased from June due to lower average miles,” Webb explained.

Among the various vehicle types, pickups showed the most price growth (up 9.2 percent), followed by vans (up 4.5 percent), SUVs/CUVs (up 1.2 percent) and luxury cars (up 0.9 percent).

The midsize cars dipped 0.2 percent and compact cars fell 6.7 percent.