According to recently released data from Manheim/Cox Automotive, the used car value index declined fairly sharply for April 2023. This increase reverses a steady change of valuation increases in the first quarter of 2023.
Valuation is a vital trend for car enthusiasts, particular those with collectible cars. It can also help illustrate good (or poor) times to consider buying a used car, particularly those that are more desirable than a traditional daily driver.
Used car valuations have seen dramatic increases the last few years, increasing almost 100% in the last few years alone. Supply chain issues and the pandemic have driven a wave of used car investment.
Car Valuation Insights From Shift Brokers
Our partner organization Shift Brokers reviews valuation reports and trends monthly. Car valuation is critically important to ensuring car enthusiasts have the right level of insurance coverage, particularly with agreed value policies.
- The oldest cars (10-20 years old) that have not yet heat peak rarity are leading in potential valuation declines
- Very high demand cars, but new and old, are retaining their scarcity but are cooling
- MSRP markups and long wait lists remain due to limited investment by car manufacturers to resolve this issues
- “Need to sell” sellers are adding used car inventory and generating the most negative pressure on the market, but these are rarely high demand vehicles
Shift Brokers made a particular note to call out the acceleration of the decline towards the end of April. While it’s still too early to know if this is a predictor of where May’s trend will go, it was an important piece of insight.
One interesting note buried in the Cox report was that declines accelerated towards the end of April. While its still too early to tell how sustained these declines will be, there certainly seems to be some suggestion that this may be beginning of a sustained cooling period. Given the nearly 100% increase in value, this will be welcome news to just about everyone but those who need to sell.
Shift Brokers – Enthusiast Car Valuation Trends April 2023
Further Car Valuation Insights
Interested in learning more about the trends in car valuation? We recommend reading Shift Brokers full analysis of Enthusiast Car Valuation Trends for April 2023. They include additional insights, predictions of future trends and more insights in how valuation could impact buying, selling or insurance.
If you are looking for more information about insurance valuation or appraisal resources, there are links to a number of additional resources to help you.
Looking Forward To May Used Car Valuation Index
We’ll be keeping a close eye on May’s valuation report to see if the accelerated declines at the end of April were indeed predictors of a larger trend towards a decline. If you are looking to buy an enthusiast vehicle, we highly recommend looking into the trends and areas of the market that may be weakest to find the best values. If you are looking to sell, to maximize value you’ll want to focus on making the car as appealing as possible, particularly in the weaker segments.
