Automotive Market Analysis Flashcards

An appraiser notices that the Manheim Used Vehicle Value Index rose 4% over the past quarter. What does this most directly indicate?

Answer: Wholesale used-vehicle prices increased on a mix- and mileage-adjusted basis

The Manheim Index tracks wholesale used-vehicle prices adjusted for mix, mileage, and seasonality.

Which metric best describes how many days current used-vehicle inventory would last at the current sales pace?

Answer: Days' supply

Days' supply divides current inventory by the daily sales rate to estimate how long stock would last.

When days' supply for a specific model is very low compared with the market average, an appraiser should generally expect:

Answer: Upward pressure on prices

Scarce inventory relative to demand tends to push prices up.

A convertible appraised in late autumn in Minnesota will most likely show which market effect?

Answer: Softer demand and lower value than in spring

Convertibles typically see weaker demand in cold months in northern markets, depressing value.

Which data source best reflects what dealers actually pay to acquire used vehicles?

Answer: Wholesale auction transaction data

Auction sale results capture real wholesale acquisition prices paid by dealers.

Why should an appraiser treat online asking prices with caution when determining market value?

Answer: Asking prices are not completed transactions and may exceed actual selling prices

Listings reflect seller expectations, not consummated sales, and often exceed final transaction prices.

A sharp rise in gasoline prices is most likely to affect which segment's used values negatively?

Answer: Large full-size SUVs and V8 pickups

High fuel costs reduce demand for fuel-thirsty vehicles, lowering their resale values.