Latest news with #ManheimUsedVehicleValueIndex
CNBC
10-07-2025
- Automotive
- CNBC
These used car stocks can benefit as tariffs 'leave the station,' says Morgan Stanley's Adam Jonas
Inflated used car prices as President Donald Trump's tariffs "leave the station" could be a boon for dealer stocks, according to Morgan Stanley's Adam Jonas. The analyst cited data from the Manheim Used Vehicle Value Index that showed prices jumped nearly 2% month-over-month in June and more than 6% year-over-year. The firm tied part of the reason for the sharp jump in prices to the effect of tariffs on sales and tight supply for both new and used cars. Other catalysts for the increase, Jonas added, were consumers opting to front load and make purchases ahead of the full implementation of tariffs, and to also "pre-buy" ahead of the removal of an electric vehicle tax credit in September. Jonas also said policy uncertainty could keep prices elevated. Trump has fanned the flames of his trade war in recent days as his tariff letters hit 14 global trading partners, including Japan and South Korea. The president last month doubled tariffs on steel and aluminum to 50%, which could have stiff ramifications for domestic carmakers. But there are still benefits to be had, according to Jonas, especially car dealers that sell both used and new cars. The analyst recommended a handful of overweight-rated stocks to play the trend, including CarMax and Carvana . One of the under the radar picks from Jonas on the list is Group 1 Automotive . Shares have climbed nearly 14% in 2025. The company sells both new and used cars, and also operates collision centers in the U.S. and United Kingdom. Analysts polled by FactSet are split on the stock, with 50% of those surveyed maintaining a hold rating, and the other half rating it a buy or strong buy. GPI YTD mountain Group 1 Automotive stock in 2025. Carvana has surged more than 73% so far in 2025. Peer CarMax has lagged, however, with a decline of more than 18%. CarMax shares came under pressure in April after the company suspended the timeframes associated with its long-term growth targets due to economic uncertainities. But the stock has climbed more than 4% since releasing better-than-expected fiscal first-quarter results in late June. Analysts remain optimistic on both stocks, with about 62% of analysts surveyed by FactSet have a buy rating on CarMax stock and 55% buy rated on Carvana.
TimesLIVE
09-07-2025
- Automotive
- TimesLIVE
Used car prices in the US surge as tariffs drive market volatility
A gauge of US used vehicle prices at wholesale auctions that proved predictive ahead of the inflation surge after the Covid-19 pandemic is climbing again, last month notching its largest annual increase in nearly three years. The rise comes amid ongoing vehicle price and sales volatility connected to car tariffs imposed by President Donald Trump. The Manheim Used Vehicle Value Index rose 1.6% in June from May on a seasonally adjusted basis and surged 6.3% from a year before, the largest year-over-year increase since August 2022, according to data released on Tuesday. At 208.5, the index has been trending upward for a year and is at its highest since October 2023. 'Wholesale appreciation trends have been more volatile over Q2 as tariffs impacted new sales and supply, which also impacted the used marketplace,' said Jeremy Robb, senior director of economic and industry insights at Cox Automotive, which provides the index. Price pressures typically ease in the second half of the year, but Robb said retail vehicle sales remain "a bit hotter than years before" and the supply of vehicles coming off lease into the used car market has been trending downward, "two factors which should be fairly supportive of higher values as we move onward'. Trump's 25% tariff on imported cars prompted a surge in new vehicle buying during the early spring as consumers sought to front run anticipated price increases from the levies. Sales fell off substantially in May and dropped again in June. Overall inflation has so far defied the predictions of most economists, but many Federal Reserve officials remain convinced some sort of price surge will follow and are hesitant to cut interest rates until satisfied the risk has passed. Manheim's index in recent years has caught the eye of private economists and some Fed officials who saw it as among the early indicators auguring for a more substantial, and long-lasting, bout of inflation as the economy emerged from the pandemic in 2021 and 2022. The index began a sharp climb in late 2020 that persisted for more than a year. By mid-2022, overall US inflation as measured by the consumer price index had topped 9% and was the highest since the 1980s. Fed governor Christopher Waller in the fall of 2021 warned against "selectively ignoring data series, be it used car prices, food and energy prices or household surveys of inflation expectations. All the series convey important information about the evolution of inflation, and one should exhibit caution in dismissing data as outliers". At the time, Waller was building the case for interest rate hikes to combat building inflation some of his colleagues considered "transitory." Waller, who is viewed to be among those Trump is considering as a successor to Fed chair Jerome Powell, appears more concerned the tariff increases will hurt demand rather than stoke another lasting bout of inflation. Waller said recently he was open to cutting rates as early as the Fed's meeting later this month.
Time of India
09-07-2025
- Automotive
- Time of India
US used car prices surge as tariffs drive market volatility
A gauge of U.S. used vehicle prices sold at wholesale auctions that proved predictive ahead of the inflation surge following the COVID pandemic is climbing again, last month notching its largest annual increase in nearly three years. The rise comes amid ongoing vehicle price and sales volatility connected to auto tariffs imposed by President Donald Trump. The Manheim Used Vehicle Value Index rose 1.6% in June from May on a seasonally adjusted basis and surged 6.3% from a year earlier, the largest year-over-year increase since August 2022, according to data released on Tuesday. At 208.5, the index has been trending upward for a year and is now at its highest since October 2023. "Wholesale appreciation trends have been more volatile over Q2 as tariffs really impacted new sales and supply, which impacted the used marketplace as well," said Jeremy Robb, senior director of economic and industry insights at Cox Automotive , which provides the index. Price pressures typically ease in the second half of the year, but Robb said retail vehicle sales remain "a bit hotter than prior years" and the supply of vehicles coming off lease into the used-car market has been trending downward, "two factors which should be fairly supportive of higher values as we move onward." Trump's 25% tariff on imported autos prompted a surge in new vehicle-buying during the early spring as consumers sought to front-run anticipated price increases from the levies. Sales fell off substantially in May and dropped again in June. Overall inflation has so far defied the predictions of most economists, but many Federal Reserve officials remain convinced some sort of price surge will follow and are hesitant to cut interest rates until satisfied that risk has passed. Manheim's index in recent years has caught the eye of private economists and some Fed officials who saw it as among the early indicators auguring for a more substantial, and long-lasting, bout of inflation as the economy emerged from the pandemic in 2021 and 2022. The index began a sharp climb in late 2020 that persisted for more than a year. By mid-2022, overall U.S. inflation as measured by the Consumer Price Index had topped 9% and was the highest since the 1980s. Fed Governor Christopher Waller in the fall of 2021 warned against "selectively ignoring data series - be it used car prices, food and energy prices or household surveys of inflation expectations. All of these series convey important information about the evolution of inflation, and one should exhibit caution in dismissing data as outliers." At the time, Waller was building the case for interest rate hikes to combat still-building inflation that some of his colleagues considered "transitory." Now, though, Waller, who is viewed to be among those Trump is considering as a successor to Fed Chair Jerome Powell, appears more concerned the tariff increases will hurt demand rather than stoke another lasting bout of inflation. Waller said recently he was open to cutting rates as early as the Fed's meeting later in July.
Business Times
09-07-2025
- Automotive
- Business Times
US used car prices surge as tariffs drive market volatility
A GAUGE of US used vehicle prices sold at wholesale auctions that proved predictive ahead of the inflation surge following the Covid-19 pandemic is climbing again, last month notching its largest annual increase in nearly three years. The rise comes amid ongoing vehicle price and sales volatility connected to auto tariffs imposed by President Donald Trump. The Manheim Used Vehicle Value Index rose 1.6 per cent in June from May on a seasonally adjusted basis and surged 6.3 per cent from a year earlier, the largest year-over-year increase since August 2022, according to data released on Tuesday. At 208.5, the index has been trending upward for a year and is now at its highest since October 2023. 'Wholesale appreciation trends have been more volatile over Q2 as tariffs really impacted new sales and supply, which impacted the used marketplace as well,' said Jeremy Robb, senior director of economic and industry insights at Cox Automotive, which provides the index. Price pressures typically ease in the second half of the year, but Robb said retail vehicle sales remain 'a bit hotter than prior years' and the supply of vehicles coming off lease into the used-car market has been trending downward, 'two factors which should be fairly supportive of higher values as we move onward.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Trump's 25 per cent tariff on imported autos prompted a surge in new vehicle-buying during the early spring as consumers sought to front-run anticipated price increases from the levies. Sales fell off substantially in May and dropped again in June. Overall inflation has so far defied the predictions of most economists, but many Federal Reserve officials remain convinced some sort of price surge will follow and are hesitant to cut interest rates until satisfied that risk has passed. Manheim's index in recent years has caught the eye of private economists and some Fed officials who saw it as among the early indicators auguring for a more substantial, and long-lasting, bout of inflation as the economy emerged from the pandemic in 2021 and 2022. The index began a sharp climb in late 2020 that persisted for more than a year. By mid-2022, overall US inflation as measured by the Consumer Price Index had topped 9 per cent and was the highest since the 1980s. Fed Governor Christopher Waller in the fall of 2021 warned against 'selectively ignoring data series - be it used car prices, food and energy prices or household surveys of inflation expectations. All of these series convey important information about the evolution of inflation, and one should exhibit caution in dismissing data as outliers.' At the time, Waller was building the case for interest rate hikes to combat still-building inflation that some of his colleagues considered 'transitory.' Now, though, Waller, who is viewed to be among those Trump is considering as a successor to Fed Chair Jerome Powell, appears more concerned the tariff increases will hurt demand rather than stoke another lasting bout of inflation. Waller said recently he was open to cutting rates as early as the Fed's meeting later in July. REUTERS
Yahoo
09-07-2025
- Automotive
- Yahoo
US used car prices surge as tariffs drive market volatility
(Reuters) -A gauge of U.S. used vehicle prices sold at wholesale auctions that proved predictive ahead of the inflation surge following the COVID pandemic is climbing again, last month notching its largest annual increase in nearly three years. The rise comes amid ongoing vehicle price and sales volatility connected to auto tariffs imposed by President Donald Trump. The Manheim Used Vehicle Value Index rose 1.6% in June from May on a seasonally adjusted basis and surged 6.3% from a year earlier, the largest year-over-year increase since August 2022, according to data released on Tuesday. At 208.5, the index has been trending upward for a year and is now at its highest since October 2023. 'Wholesale appreciation trends have been more volatile over Q2 as tariffs really impacted new sales and supply, which impacted the used marketplace as well,' said Jeremy Robb, senior director of economic and industry insights at Cox Automotive, which provides the index. Price pressures typically ease in the second half of the year, but Robb said retail vehicle sales remain "a bit hotter than prior years" and the supply of vehicles coming off lease into the used-car market has been trending downward, "two factors which should be fairly supportive of higher values as we move onward.' Trump's 25% tariff on imported autos prompted a surge in new vehicle-buying during the early spring as consumers sought to front-run anticipated price increases from the levies. Sales fell off substantially in May and dropped again in June. Overall inflation has so far defied the predictions of most economists, but many Federal Reserve officials remain convinced some sort of price surge will follow and are hesitant to cut interest rates until satisfied that risk has passed. Manheim's index in recent years has caught the eye of private economists and some Fed officials who saw it as among the early indicators auguring for a more substantial, and long-lasting, bout of inflation as the economy emerged from the pandemic in 2021 and 2022. The index began a sharp climb in late 2020 that persisted for more than a year. By mid-2022, overall U.S. inflation as measured by the Consumer Price Index had topped 9% and was the highest since the 1980s. Fed Governor Christopher Waller in the fall of 2021 warned against "selectively ignoring data series - be it used car prices, food and energy prices or household surveys of inflation expectations. All of these series convey important information about the evolution of inflation, and one should exhibit caution in dismissing data as outliers." At the time, Waller was building the case for interest rate hikes to combat still-building inflation that some of his colleagues considered "transitory." Now, though, Waller, who is viewed to be among those Trump is considering as a successor to Fed Chair Jerome Powell, appears more concerned the tariff increases will hurt demand rather than stoke another lasting bout of inflation. Waller said recently he was open to cutting rates as early as the Fed's meeting later in July. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
