Page 9 - 2018 On the Move Issue 3
P. 9

Looking at trends in  weekly Manheim   continue to see sharp declines as sales   1% compared to April. Average mileage
      Market Report (MMR) prices, the tradi-  in May fell 9% compared to last year.   for rental risk units in May (at 43,000
      tional spring bounce this  year started   Light trucks outperformed cars in May   miles)  was 11% above a  year ago but
      three weeks later than it did in 2016 and   and were up 14% year-over-year.   down 1% month-over-month.
      earlier years and peaked in April in week
      15. Used vehicle prices are now moving   Combined rental, commercial, and gov-  Continued strong
      down but remain higher now compared    ernment purchases of new vehicles were   economic momentum.
      to where they were at the beginning of   up 18% year-over-year in May, led by in-  The Employment Report for May  was
      the year than any of the last three years.   creases in commercial (+2%) and rental   much stronger than expected as job
      Price comparisons to last year are start-  (+30%) fleet channels.             creation increased to 223,000 when an-
      ing to get tougher as 2017 saw very low                                       alysts had expected 190,000.  The prior
      depreciation starting in May and lasting   New vehicle inventories came in under   two monthly numbers were also revised
      throughout the summer.                 4 million units for the first time in three   up for a net increase of 15,000 more jobs
                                             months, and inventories are at their low-  than originally estimated. Consumer
      On a year-over-year basis, all major mar-  est levels since January.          Confidence, as measured by the Confer-
      ket segments saw price gains in May.                                          ence Board, increased in May to 128, the
      Compact  cars,  SUVs/CUVs,  and  vans   Used vehicle sales dip in May.        second highest level for the year and the
      outperformed  the  overall  market, while   According to Cox Automotive estimates,   third best level in more than 17 years.
      midsize cars and pickups underper-     used vehicle sales volume decreased by
      formed the overall market.             1% year-over-year in May versus last year.   Looking for more insights into the au-
                                             The annualized pace of used  vehicle   tomotive  market? Visit  https://www.
      New vehicle sales are up.              sales is up 1% over last year. We estimate
      May new vehicle sales increased 5%     the May used SAAR to be 39.7 million, flat   ter/2018-ucmro/ to download the 2018
      year-over-year, with one more selling   on a month-over-month basis.          Used Car Market Report and Outlook.
      day compared to May 2017. May SAAR
      came in at 16.8 million, up from last   Rental risk pricing strengthens.
      year’s 16.7 million; this breaks the streak   The average price for rental risk units
      of eight straight months of new SAAR   sold at auction in May was up 8% year-
      coming in at or above 17.0 million. Cars   over-year. Rental risk prices were down
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