ATLANTA -

Prices continued to fall in the lanes this past month, according to the Manheim Used Vehicle Value Index.  In fact, marking the fourth consecutive monthly decline, wholesale prices slid 1.8 percent in July.

This shift brought the Index to a level of 121.2, down 3.7 percent from a year ago, according to the analysis from Manheim chief economist Tom Webb.

And interestingly, each of the past four monthly declines has been larger than the one that preceded it; but Webb noted this is not cause for worry.

“We still consider this an orderly realignment of prices, not a free fall,” he shared. 

“Indeed, it is likely that many dealers appreciate the easing in wholesale prices, as well as the greater availability of desirable inventory at auction,” Webb continued, stressing that dealers may be finding this price shift a welcome reprise from high rates in the lanes seen earlier .

Offering a deeper look into some particular segments within the wholesale market, Webb shared that wholesale prices for small and midsize cars weakened the most in July, despite a 20-cent rise in fuel rates over the past five weeks.

“For late-model small cars, lower prices were often the result of competitive pressure from the new market. Wholesale prices for small cars in general have recently been hurt by the increased volume and variety of such units available at auction,” he further explained.

Another segment that saw a more drastic decline in prices than most was off-rental units, which have fallen for three consecutive months. These rates are now 2 percent lower than during the same period last year.

And which vehicles running through the lanes are most attractive to dealers this summer?

Webb shared that with respect to priced tiers, vehicles priced between $8,000 and $10,000 continued to be the strongest segment of the wholesale market.

Moving along, he also covered some sales trends for this past month, as well.

First up, in some more good news for dealers, used-vehicle retail sales were also up in July.

Total used vehicle retail sales rose more than 2 percent in July, according to CNW Research, and resulted in a year-to-date gain of just under 4 percent.

“Sales continue to be helped by the greater availability of retail financing, especially in the subprime arena,” Webb noted.

And on top of an impressive sales rate, he noted that “operating efficiencies, quick inventory turns, and strong F&I income enabled dealers to make good profits in their used vehicle operations, despite a narrowing in gross margins.”

And new-vehicle sales continued to tick along at a regular pace, with the SAAR still sitting at around 14 million.

“New cars and light-duty trucks sold at a seasonally adjusted annual rate of 14.1 million in July, despite significant reduction in fleet deliveries,” Webb stated.

“Given the dark economic backdrop (with only a temporary brightening provided by an increase of 163,000 jobs in July), the new vehicle sales numbers have been impressive,” they continued. “Manufacturers continue to maintain inventory and pricing discipline, and have already made smooth model-year transitions for many important new launches.”

Manheim Opens New Sunshine State Location 

In another piece of news from the company, Manheim Jacksonville, the company’s newest location in Florida, will open Thursday This marks Manheim’s 10th location in the Sunshine State. 

The new auction will launch with a Total Resource Auctions sale at 11:00 a.m. EST and a traditional sale at 1:00 p.m., featuring Asbury Automotive Group along with several new-car franchises and independent dealer consignors, the company shared.
 
“We are excited to give customers more sales options in north Florida and throughout the southeast,” said Eric Wagner, general manager, Manheim Daytona Beach and Jacksonville. “Our location will set a new standard of service and technology for our customers in the Jacksonville dealer community.”
 
The new, 20,000-square-foot location will service both traditional and TRA customers, and is located on 10 acres.

The facility will feature two lanes with Simulcast and online transactions via OVE.com.

“A new Digital Lounge will be open five days a week for dealers to search inventory nationally, participate in Simulcast sales and conduct business on OVE.com,” officials added.

Manheim also shared that the location will open with employees cross-trained on both whole car and TRA sales.
 
“This integrated approach allows us to serve our customers’ needs on first contact,” said Wagner. “Jacksonville, the largest city in Florida, offers great growth potential and provides our customers with added convenience in a marketplace they requested."