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hicle auction company reported its mid-month “Used Vehicle Value Index” fell to 125.2 points, a 9.6% decrease from the same period a year ago. The prior record for decline in any month was 5.5% in November 2008.

Manheim also pointed out, however, that when its used vehicle value index fell 10.5% over two months in the fall of 2008 at the start of the Great Recession, the horizon looked bleak then as well, yet vehicle values fully recovered seven months later.

Sure enough, this year there was a strong—nearly 9%—rebound in May, Manheim reported, bringing pricing to within 1.9% of what it was a year earlier. The index then jumped another 6.6% in the first half of June, erasing much of the spring decline and reaching a level that is actually 4% higher than last June.

Admittedly , there are still factors that could lead to a lot of instability in used vehicle pricing in the coming months.

Rental car companies continue to send significant numbers of used vehicles to the auctions as they reduce their fleets in response to the drop in travel. Repossessions are also picking up, and while automakers delayed some turn-back dates on leases this spring during the worst of the COVID-19 impact, more of those vehicles also are expected to join the parade of used vehicles hitting the market. Still, the fact that the large decline in the spring didn’t hold should come as welcome news to collision repairers.

Traffic levels are getting closer to “normal”

Traffic analyst firm INRIX at the end of June halted the weekly reports it was producing on traffic levels around the country given that by its system of measurement—a comparison to weekly traffic in February— personal vehicle traffic on a rolling seven-day national basis was back to 100% as of June 25.

As July began, more than 34

states had traffic levels higher than in Demand for gasoline, as meaparts delays,” a shop in Northern CalFebruary, according to INRIX, and sured by how much was being deifornia commented. only three states had declines exceedlivered to retail stations around the But at least one in four shops ing 10%: Hawaii (still down 43%), country , also has rebounded to close said they could point to something California (down 12%) and Arizona to “normal.” Back in April, accordhelpful insurers were doing. Those (down 11%). Forty-two of the 98 ing to the U.S. Energy Information included shops saying they were metropolitan areas INRIX tracks in Administration, gas deliveries had being paid for the added labor for the U.S. had traffic at or exceeding tumbled by 47% compared a year “COVID-19 cleaning” of vehicles. February levels. earlier. But by the last two weeks Shops on Progressive’s direct of June, the amount of repair program also said the comgasoline being delivered pany has followed through on its was just 10% below what pledge in mid-April to share with it was during the same pethose shops more than $2 million of riod last year. the money the company was saving Some shops point to help and other insurers were experiencfrom insurers ing. A poll of shops in the sec“Progressive gave us $1,000 to ond half of June asked help with the reduction in work,” shops if they have been ofone Florida shop reported, a dollar Manheim’s used vehicle pricing index in June had rebounded significantly after a record-setting drop this spring, reaching fered any assistance from insurance companies to figure that was confirmed by more than a half-dozen other Progressive levels higher than a year ago, which will help prevent more help their business during direct repair shops. vehicles from being declared total losses the pandemic. A large maA shop owner in Hawaii said jority said no. GEICO had increased shop labor That’ s a fairly sharp recovery, given “Just the opposite. Most insurers rates, and shops on USAA’s direct that in early April, traffic had fallen are auditing more files and becomrepair program in Oregon and Illito nearly half of what it had been ing very nitpicky,” a shop owner in nois reported the insurer suspended just six weeks earlier. Hawaii said. the performance-based bottom line

It should be noted that the IN“They just want you to cover discount the shops are required to RIX data paints a little brighter picrental even when the pandemic caused give that insurer. ture of traffic around the country than it would if it compared traffic in June to what it was a year earlier. Because traffic tends to rise in the spring and summer, reaching February levels in late June still represents about a 16% decline compared to a year earlier. But 16% off is significantly better than the 47% decline in April. And Genuine Nissan & INFINITI OEM Wholesale Parts are Superbly The following dealers proudly stock genuine analysis of traffic camera data in some Crafted to Strict Quality Standards. parts for your cities and states indicates even more Nissan or Infiniti repairs. of a full recovery in some markets. Using that measurement, statewide traffic in Florida and Indiana during NISSAN the third week of June, for example, MINNESOTA WISCONSIN was down by just 4% or less comEden Prairie Nissan Gandrud Nissan pared to the same week in 2019, and Eden Prairie Green Bay down by less than 10% in Arizona, 952-567-2150 800-242-2844 Ohio and Michigan. Looking at vehicle counts tracked (952) 567-2197 Fax M-F 6:30-7 parts@edenprairienissan.com (920) 785-5868 (920) 884-0882 Fax M-F 7-7, Sat. 7-2 on state highways in some cities also www.edenprairienissan.com nissanparts@gandrud.com points to at least a near return to normal in some cities. Traffic on I-465 in Indianapolis in early July, for example, was actually 6% higher this year when measured against the same week last year. And traffic camera GENUINE SERVICE & PARTS data for that week indicates just a 10% decline on state Route 315 in Columbus, OH, and only a 6% decline on I-85 in Charlotte, NC. from the drop in claims Progressive