Manheim’s released their index Thursday morning. The used vehicle price index increased 0.8% sequentially (from October to November), but was down 1.7% year over year. I don’t have a lot to say about the figure but I did want to pass on some of Tom Webb’s (Manheim’s Chief Economist) comments about the pricing environment:
Wholesale used vehicle pricing in November benefited from an improved new vehicle inventory situation and fewer end-of-service program rental vehicles entering the market. The inventory situation should continue to improve in the months ahead, but longer-term, it is reasonable to have some concern about the strength of the economy and its ability to keep retail markets active and, thus, supportive to wholesale pricing.
Finally, Jennifer Reed, the online editor of AutoRemarketing.com alerted me to an article they published yesterday in Sub Prime Auto Finance News. Specifically, where Mike Stoller, a GMAC spokesperson said:
GMAC has not been a meaningful player in buying used-car financing, but with a lower cost of funds and greater balance sheet capacity, we can move toward a position where we can enhance our existing dealer relationships by offering this service.
Now GMAC management hinted about the idea of offering its financing capabilities to independent dealers when they discussed GMAC becoming a separate entity. Now separated, I’ve got to give autoremarketing.com some credit for finding out that GMAC is going ahead with this idea. I only hope the folks at GMAC heed my advice about making sure they put customers in the vehicles they can afford (over the long term).