FI showroom red and grey logo
MenuMENU
SearchSEARCH

Manheim Index Reaches Record High for Fifth Consecutive Month

The Manheim Used Vehicle Value Index reached a record high in September for the fifth consecutive month, while the SAAR rose to its highest September reading in three decades. The main driver was replacement demand caused by hurricanes Harvey and Irma.

by Staff
October 12, 2017
Manheim Index Reaches Record High for Fifth Consecutive Month

 

3 min to read


ATLANTA — The Manheim Used Vehicle Value Index reached a record high for the fifth consecutive month in September, increasing 6.3% from a year ago to 134.9. The reason, according to analysts with the firm, was replacement demand related to hurricanes Harvey and Irma, which drove up wholesale used-vehicle prices 2.77% on a month-over-month basis.

On a year-over-year basis, all major market segments realized gains in value, including midsize cars. Luxury cars, pickups, and vans, however, outperformed the overall market.

Ad Loading...

“Though wholesale market values continue to show strength as a result of growing retail demand, most of this price strength can be attributed to the recovery following Hurricane Harvey and Hurricane Irma,” the firm noted. “Replacement demand combined with a reduction in available supply is causing wholesale inventories to tighten. The impact to the wholesale market is widespread, providing additional support for the likely continued wholesale price gains for at least another month or two.”

Replacement demand was felt in the new-vehicle market as well, with September’s new-vehicle sales volume jumping 6% year over year with one more selling day compared to September 2016. And with a seasonally adjusted annual rate of 18.5 million, this was the highest September SAAR reading in three decades and the highest monthly SARR level since July 2005.

By segment, cars continued to fall out of favor with consumers, with September sales falling 3% from a year ago and all major car segments registering sales declines. In contrast, light trucks were up 12% year over year, with both the Ford F-Series and Chevy Silverado up 21% year over year.

On a year-to-date basis, new-vehicle sales are down 2% compared to the year-ago period.

Combined rental, commercial, and government purchases of new vehicles were up 7%, led by gains in commercial (up 26%), rental (up 2%), and government (up 4%) fleet channels. Overall fleet sales are down 10% for the year vs. 2006.

Ad Loading...

As for used, sales were up 8% year over year in September, with the month’s used-vehicle SAAR increasing from August’s 38.1 million read to 40.4 million units. “The retail growth in used sales is coming from vehicles less than four years old, which have grown 5% year to date versus the same period last year,” the firm said in its report. “Vehicles less than four years old represent the largest age segment of vehicles in the used-car market.”

Manheim also noted that the economy “continues to chug along” with GDP growth of 3.1% in the second quarter — the strongest quarter in more than two years. “The economy was gaining momentum this summer, and that growth would have continued in the third quarter had we not had the disruption of the severe hurricanes in August and September,” the firm said. “The hurricanes disrupted auto sales, home sales, and retail sales in August. Consumer spending had grown a robust 0.3% in July from June, but increased only 0.1% in August. Adjusted for inflation, purchases declined 0.1%, which was the first decrease since January.

“Spending is expected to rebound in subsequent months to more than make up for the August disappointments,” the firm added. “We are clearly already seeing that in auto sales.”

More Auto Finance

Photo of document next to calculator and inkpen
Auto FinanceJuly 20, 2026

Dealerships Are Paying the Price for Extended Car Loans

Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.

Read More →
silver car in background with hand in front holding out a set of keys, Trade-In Trouble, F&I and Showroom
Auto Financeby Lauren LawrenceJuly 20, 2026

Trade-Ins in Negative Equity Reach New Heights

As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.

Read More →
Two men in suit jackets shaking hands in front of a new-looking white vehicle
Auto Financeby Hannah MitchellJuly 15, 2026

Auto Credit Plentiful

June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.

Read More →
Ad Loading...
Woman's hands holding an wallet empty of cash
Auto Financeby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Three men smiling for headshots
Auto Financeby Lauren LawrenceJuly 1, 2026

Porsche Financial Services Shifts Structure

After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.

Read More →
$100 bill and magnifying glass on top of paper that says insurance policy terms and conditions.
F&Iby Lauren LawrenceJune 29, 2026

Tariffs Could Raise Insurance Premiums

As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.

Read More →
Ad Loading...
Red toy car sitting on top of coins.
Auto Financeby Lauren LawrenceJune 24, 2026

Smaller Loans, Longer Terms

The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.

Read More →
Photo of man holding a car key
Auto Financeby Hannah MitchellJune 17, 2026

New Cars a Tad More Affordable

May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.

Read More →
Photo of a white toy car next to piles of coins
Auto Financeby Hannah MitchellJune 8, 2026

First-Quarter Sees Long Auto Loan Growth

Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.

Read More →
Ad Loading...
Assurant, Mastering Credit Friction, Sales Series, Expert Trainer Josh Krach
Auto FinanceMay 29, 2026

Mastering Credit Friction

In this video, Josh Krach explains how to turn credit friction into an advantage.

Read More →