The Manheim Used Vehicle Value Index is up for the fourth straight month at 107.9 in May. This represents a gain of 3.1 percent year-to-date and 0.3 percent for the month. The index, a statistical analysis drawn from Manheim's database of five million annual used-vehicle transactions, is up five percent from year-over-year.
Low inventory of used fleet vehicles in the wholesale market is causing resale prices to stay strong as dealer demand remains steady. The weakest fleet vehicle segment continues to be minivans, which are in the third year of a soft resale market. Despite today’s high gas prices, resale values for large SUVs remain stable and the V-8 engine is still the preferred engine by dealers.
Two Federal Bank presidents say that rising inflation may force an interest rate hike sooner than expected. They join Fed chairman Alan Greenspan in saying they are not bound to raise rates at a "measured pace." The Fed's rate is currently at 1 percent, the lowest level since 1958. Wall Street expects the Fed to raise the rate to 1.25 percent at the June 29-30 meeting.