Manheim economist Tom Webb predicts favorable year for used cars

Says auction volumes should increase again in 2007

Highlights of 2006 included record certified sales

Also strong numbers at publicly traded dealership groups

Manheim Used Vehicle Value Index had 3rd straight increase in Dec

Auction volumes up 1.8% in 2006; should increase about same in 2007

About 42.5M used units retailed last year

Consumer confidence, low jobless claims will help keep retails steady

Decreasing new-car sales may also help used market

"Generally speaking, I would describe the wholesale-pricing environment as solid, driven by such fundamentals as a healthy retail environment for used vehicles, a continued reduction in that excessive new-vehicle inventory overhang and a very favorable credit environment for used-vehicle loans." -- Tom Webb, economist, Manheim

"Even more noteworthy, consumer confidence measures remained in a very narrow band throughout 2006, despite the ups and downs of gasoline prices and a substantial correction in the housing market." -- Webb

"And don't forget to add in less direct competition from the new-vehicle market. Total new-vehicle inventories continued to fall in December [relative to a year ago], despite relatively soft sales." -- Webb

"Year in and year out, the used-vehicle market is very, very stable. As far as 2007, it seems to me that the conditions remain favorable." -- Webb