Latest news with #Manheim
Forbes
27-05-2025
- Automotive
- Forbes
Tariff Effects Look To Spark Tough Summer
After an initial rush to purchase vehicles before import tariffs kicked in, the sales rate has ... More slowed and prices are likely to increase. It was all going so well. Sales for both new and used vehicles were already skipping along at a brisk pace. After Pres. Trump announced tariffs on imported vehicles sales then accelerated into overdrive when consumers stormed showrooms to avoid the expected price hikes. But as British troubadours Chad and Jeremy sang long ago, that was yesterday, and yesterday's gone. Cox Automotive senior economist Charlie Chesbrough briefing media on market conditions during an ... More event at the Manheim Detroit wholesale vehicle auction facility on May 22, 2025. 'It's really tomorrow that we're worried about, and that's because these tariffs are really going to start to have an impact on the market here over the next couple of months,' said Charlie Chesbrough, senior economist at Cox Automotive, during a media event at the company's Manheim Detroit wholesale auto auction facility. 'We think that there's going to be a situation where the selling pace of both the new and the used market is likely to shift into a slower pace here over the summer months, as high vehicle prices start to hit the market.' The rush to score deals before the tariffs kicked in led to the seasonally-adjusted sales rate for new vehicles to jump to 17.8 million vehicles in March, and 17.3 million in April, according to Cox research. That squares with research from J.D. Power showing in March and April, approximately 149,000 extra vehicles were sold due to buyers re-timing their purchases on the expectation of significant future price increases. 'These re-timed sales will present a headwind to the industry sales pace for the balance of this year,' wrote Thomas King, president of the data and analytics division at J.D. Power. 'Despite this effect, retail demand for new vehicles remains robust, with retail sales expected to increase 1.1% over a year ago.' Used car sales saw a similar surge, although Chesbrough points out that's more typical of the spring selling season when consumers receive their tax refunds. In both cases, however, the buying frenzy has led to thinner inventories, meaning fewer discounts and higher prices, bad news at a time when vehicle affordability was just starting to attenuate from record highs. 'We actually went through a period where prices were contracting for quite a time in the new vehicle market,' pointed out Chesbrough. 'But now you can see they're starting to rise again, and with these tariffs coming in over the course of the summer, that's going to put even more pressure on these prices and in the used vehicle markets, a similar story as well.' Prices for used vehicles are starting to increase due to lean inventories of trade-ins and vehicles ... More coming off-lease. The average transaction price for new vehicles rose 1% last month from a year ago and about $1,000 from March to about $48,700. For used vehicles, the ATP stood at $25,547, down from the peaks during the days of lean inventories caused by Covid-era production slowdowns, according to Cox research. The numbers from J.D. Power differ slightly, but not the trend. 'The average used-vehicle price is trending towards $29,168, up $130 from a year ago,' wrote King. 'This reflects the combination of reduced supply of recent model-year used vehicles—due to lower new-vehicle production during the pandemic—fewer lease maturities and manufacturers moderating discounts.' But in both cases, consumers' budgets are likely to be further challenged as we head into the summer. 'Our expectation is over the course of the summer, those prices are going to rise even more quickly,' predicted Chesbrough. Auction lanes at Manheim Detroit where used vehicles are sold to dealers. Stark evidence of price increases for used vehicles is seen at the sprawling Manheim Detroit facility and the other Manheim sites, where dealers bid on vehicles to fill their lots through both online and in-person auctions. The selling price at those auctions rose an average of about 4.9% in April with the largest increase of 5.5%, according to Chesbrough. That includes the full breadth of body styles for internal combustion engine and electric vehicles. Propping up used vehicle values is the dearth of trade-ins and turned-in lease vehicles caused by the Covid-era production and sales slump. But with both the sales and leasing pace seeing sharp increases since then, the supply of used vehicles coming to auction is expected to surge in the next couple of years, but with a distinct change in category. With battery electric and hybrid vehicles leasing at more than a 50% rate the last few years, Chesbrough expects 'We're going to see a whole bunch of those electric vehicles coming to auction. In fact, about 500,000 are expected in 2027.' Consumer sentiment is at its lowest point since the Great Recession in June, 2022, according to the ... More University of Michigan. But in the near-term, despite some automakers vowing to absorb the costs of import tariffs, eschewing price increases, the combination of the levies and the overall state of the economy has consumer confidence as its lowest point since June of 2022 during the Great Recession, according to the University of Michigan consumer sentiment study. 'We were recovering,' said Chesbrough. 'But then once we got past the election and Trump started talking about these tariffs, we've fallen off a cliff since last December. The concern is that when you have consumers in this situation where they're really concerned about the outlook for the U.S. economy, it almost becomes a self-fulfilling prophecy. They start pulling back on their consumption.' Indeed the title of another long-ago hit may predict what's up ahead could very well turn out to be a 'Cruel Summer.'
CNBC
07-05-2025
- Automotive
- CNBC
Used vehicle pricing barometer jumps to highest level since 2023 amid auto tariffs
A Ford mustang is seen at a used car dealership in Montebello, California on May 5, 2025. DETROIT — A closely watched barometer for used vehicle pricing jumped last month to its highest level since October 2023 as consumers rushed purchases amid fears of price hikes due to auto tariffs. Cox Automotive's Manheim Used Vehicle Value Index — which tracks prices of used vehicles sold at its U.S. wholesale auctions — increased 4.9% last month compared with a year earlier to a level of 208.2. It also marked a 2.7% increase from March. That's a significant increase compared with a historically typical month-to-month index move of 0.2%, according to the auto data and logistics firm. "The 'spring bounce' normally ends the second week of April, but this year, wholesale appreciation trends continued for the entire month and were much stronger than we typically observe," said Jeremy Robb, Cox Automotive senior director of economic and industry insights. "We expected to see strong price appreciation in response to the tariffs, and that's exactly what came." While the tariffs of 25% on new imported vehicles and many parts do not directly impact used car sales, changes in new vehicle prices, production and demand affect the used car market, which is how the majority of Americans purchase a vehicle. Retail prices for consumers traditionally follow changes in wholesale prices, but they have not fallen as quickly as wholesale prices in recent years. Cox reports retail used-vehicle sales in April were down 1.7% compared with March but higher year over year by 13%. Over the last four weeks, the average retail listing price for a used vehicle increased by 2% to more than $25,000, Cox said.. That compares to a new vehicle at nearly $48,000. The Manheim index remains off the record highs it hit during the Covid pandemic but is still relatively high compared to historic levels before the onset of the global health crisis in 2020. Cox previously said it was seeing used vehicle prices continue to stabilize after swinging wildly for several years before starting to calm down in 2024. Page 2
Mid East Info
01-05-2025
- Automotive
- Mid East Info
Sebastian Fuchs of Auto Data Middle East: Driving the Future of Electric Mobility at EVS Saudi Arabia 2025
Sebastian Fuchs Bio Sebastian Fuchs is the Managing Director of Digital Products and Services at Auto Data Middle East, driving strategic initiatives for multi-million-dollar growth across the GCC region and North America. With a focus on customer-centric strategies and technology integration, he oversees organisational expansion and improves financial performance. Fuchs pioneers technological advancements like augmented reality and leads to revolutionise the automotive retail landscape. Leveraging over two decades of experience, he played a pivotal role in Auto Data Middle East's expansion across the UAE, KSA, and Oman. Before joining Auto Data Middle East, Fuchs led successful digital initiatives at Manheim and RMS Continental Europe – Cox Automotive, notably launching Manheim Express in Germany. With extensive expertise across strategic leadership, sales and marketing, business development, risk management, technological advancements, ensuring customer satisfaction and driving innovative strategies for business growth. With extensive experience spanning over 20 years, Fuchs has played an integral role in augmenting the European automotive sector with the development and implementation of used car schemes, and OEM Used Car Schemes for renowned brands such as Jaguar Land Rover Germany, Hyundai Motor Europe, Volvo Car Group and Europcar International. A committed philanthropist, Fuch actively supports children's orphanages in Thailand. He is also an accomplished athlete and holds academic credentials from the Graduate School of Business Administration Zurich and VWA Wiesbaden. With a focus on solidifying Auto Data Middle East's leadership in automotive data services, Fuchs remains dedicated to navigating the company toward international success in an evolving digital landscape. About EVS Saudi Arabia 2025 EVS Saudi Arabia 2025 is the Kingdom's premier international exhibition dedicated to showcasing the future of electric vehicles, energy storage solutions, and smart mobility innovations. Taking place from May 4–6, 2025, at the Riyadh Front Exhibition and Conference Center, the event will bring together leading local, regional, and global manufacturers, suppliers, innovators, policymakers, and investors under one roof. In alignment with Saudi Arabia's Vision 2030, EVS Saudi Arabia 2025 is committed to accelerating the transformation of mobility by fostering innovation, facilitating strategic partnerships, and creating investment opportunities that drive sustainable transportation initiatives across the Kingdom and the Middle East. Visitors will have the opportunity to explore the latest advancements in electric mobility, battery technologies, charging infrastructure, and energy storage solutions. In addition to the exhibition, the event will feature dynamic educational forums, live demonstrations, and exclusive networking platforms designed to bridge the gap between technology innovators and end users, build consumer trust in EV adoption, and establish Saudi Arabia as a leading hub for electric mobility in the region and beyond. The event highlights include: Hundreds of leading exhibitors and solution providers Thousands of industry buyers, entrepreneurs, business leaders, and government officials Live product showcases, B2B matchmaking sessions, and expert-led seminars Key sectors featured: Electric Vehicles and Automotive Components EV Charging Infrastructure and Station Technologies Battery Technologies and Energy Storage Solutions Smart Mobility Systems and Infrastructure Projects Renewable Energy Integration for Transportation About Auto Data Middle East is the region's most trusted provider of vehicle information systems, delivering cutting-edge solutions to the automotive, insurance, banking, and government sectors. By combining big data technology, machine learning, and expert human research, Auto Data ensures the most accurate, complete, and unbiased automotive data available across the GCC and beyond. Headquartered in Dubai, Auto Data Middle East partners with insurers, banks, OEMs, dealers, and government entities to empower smarter decision-making. Their innovative, customer-centric services enable clients to price insurance policies, manage auto loans, assess vehicle values, and streamline vehicle trading, solidifying Auto Data's reputation as a leader in automotive intelligence and digital solutions. Exclusive Interview Insights Q: What key factors are driving EV adoption in Saudi Arabia today? A: EV adoption in Saudi Arabia is fueled by consumer interest, ambitious government targets under Vision 2030, and aggressive industrial investments. Vision 2030 specifically aims for 30% of vehicles in Riyadh to be electric by 2030. Over 40% of Saudi consumers are considering an EV within the next three years, demonstrating rising awareness. The government's local manufacturing initiatives with brands like CEER, Lucid, and Hyundai, along with battery supply chain investments and EV-friendly policies, are accelerating the transition toward sustainable transport. Q: How can events like EVS Saudi help educate the public and build trust in electric mobility? A: Events like EVS Saudi play a critical role in connecting innovation with public understanding. They showcase new technologies, address consumer concerns—such as battery life and resale value—and highlight private and public sector advancements. Updated data at EVS Saudi reveals that many Chinese EV models are now outperforming traditional vehicles in residual value. Through live demonstrations, expert sessions, and direct engagement, events like these make electric mobility more relatable and less intimidating for the general public. Q: What infrastructure developments are crucial for Saudi Arabia to scale EV usage? A: Expanding the EV charging network is essential. Currently, Saudi Arabia has around 285 public chargers, but to meet future demand, approximately 160,000 chargers will be needed by 2035. New initiatives, including a Public Investment Fund and Saudi Electricity Company project aiming to install 5,000 fast chargers by 2030, are crucial. Rapid, strategic deployment of chargers in urban areas, tourist hubs, and along major highways, along with grid upgrades and battery supply planning, are fundamental to supporting widespread EV adoption. Q: Where do you see the Saudi EV market five years from now? A: By 2030, EVs are expected to represent over 30% of all new light-duty vehicle sales in Saudi Arabia, with projections rising to over 60% by 2035. Over the next five years, local production will scale up, EV costs will fall due to domestic supply chains, and broader model availability will help close today's pricing gap. Saudi Arabia is on track not just to adopt EVs but to emerge as a significant regional and global leader in electric mobility. EVS Saudi Arabia 2025May 4–6, 2025 | Riyadh Front Exhibition and Conference Center | Riyadh, Saudi ArabiaOrganized by MIE Events DMCC | Driving the Future of Electric Mobility🌐 | 📧 info@ Register Now:
Yahoo
12-02-2025
- Automotive
- Yahoo
Used car prices jump most since May 2023 and could push higher as inventory shrinks
New and used car prices were mixed to start the year in January's Consumer Price Index (CPI) reading, but used prices continued trending higher, with January's jump the largest since May 2023. New car prices were flat in January and down 0.3% compared to a year ago, whereas used vehicles popped 2.2% in January and were up 1.0% for the year. This comes as overall prices in the US rose 0.5% over the previous month, the largest monthly headline increase since August 2023 and a slight acceleration from the 0.4% rise seen in December. Year-over-year prices rose 3.0% over the prior year in January, an uptick from December's 2.9% annual gain in prices. Read more: From $5 eggs to insurance premiums, here's where prices are rising Used vehicle prices had been rising month over month since September's report, and this month's 2.2% gain was the largest monthly jump since May 2023, when prices jumped 3.2%. This recent trend reversed a slight downdraft in used car prices. Compared to their peak in February 2022, prices paid for used vehicles are now down 14.5%. But during the pandemic, used vehicles were on a tear. Used car prices rose more than 40% annually in both June and July 2021, and again in January and February 2022. Prices for used cars and trucks are still 23.6% higher than in July 2019. One of the reasons why used vehicle prices are climbing higher in a generally slow time for the market could be supply. Manheim's used vehicle value index, which tracks used vehicle transactions at the wholesale auction level, rose 0.4% in January and 0.8% year over year. 'While it's not yet spring, wholesale values increased more than we usually see in the month of January, with particular strength at the end of the month,' said Jeremy Robb, senior director of Economic and Industry Insights at Cox Automotive. 'Currently, retail days' supply at used dealerships sits nine days lower than last year, and we are just now on the cusp of starting the spring wholesale market.' Robb added that the Manheim index is at its highest point since October 2023, after the industry experienced stronger-than-usual gains on a non-seasonally adjusted basis. Which is all to say the industry is seeing price gains when not expected. Lower used inventory is a cause, and this tends to correlate with a decreased amount of off-lease vehicles coming back to the market. The auto industry suffered from a supply chain crisis in 2021 through 2022, meaning fewer vehicles were sold and leased. Vehicles leased then will be coming off lease now, as 36-month, 42-month and 48-month leases are completed. Inventory issues aside, prices could continue pulling higher due to seasonality. The spring is considered a strong time for auto sales, as consumers look for deals on current model year vehicles and have tax refund money to spend. As for the transportation services sector in general, prices are still climbing higher but not at the clip once seen. Motor vehicle maintenance and repair rose 0.5% in January, up 5.9% for the year, whereas car insurance rose 2.0% for the month, climbing 11.8% for the year. In the recent past, these figures surged even on a month-over-month basis, with insurance rates jumping 22.2% back in April 2024, the fastest jump in 47 years. One of the reasons the cost of auto insurance surged higher recently is that cars have become more expensive, leading to increased cost of parts and repairs. Newer cars contain more technology, such as sensors and control modules built into bumpers and exterior panels, which makes a simple fender bender a potential several-thousand–dollar repair. And like almost all industries since the pandemic, the cost of labor has risen dramatically as well, fueling higher repair bills and leading to increased premiums. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram. Sign in to access your portfolio
