CAA Automotive Market Analysis 2

Question 1

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

Accepted Answer

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

Answer

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

Question 2

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

Accepted Answer

Days' supply

Answer

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

Question 3

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

Accepted Answer

Upward pressure on prices

Answer

Scarce inventory relative to demand tends to push prices up.

Question 4

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

Accepted Answer

Softer demand and lower value than in spring

Answer

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

Question 5

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

Accepted Answer

Wholesale auction transaction data

Answer

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

CAA - Certified Automotive Appraiser Practice Test