Wholesale used vehicle prices rose 1.6% through the first half of November as compared to October, according to the mid-month Manheim Used Vehicle Value Index released Nov. 19.
The index also reported that monthly wholesale vehicle prices were up 0.5% compared to November 2023. Usually, wholesale costs paid by dealers declines slightly in November, meaning the mid-month data showed “much less depreciation than usual,” according to an analysis of the data published last month by Cox Automotive.
In addition to the trends pointing to increasing prices, the supply of both wholesale and retail used vehicles fell in October, per the Cox analysis.
“With sales conversion moving higher for six weeks in a row, it’s not surprising to see strength in wholesale prices in early November,” Jeremy Robb, senior director of economic and insights at Cox Automotive, said in a statement.
Moreover, the analysis noted that retail used vehicle sales increased over the past month. “That should keep dealer demand for wholesale units elevated in coming weeks,” Robb said.
The used vehicle index released by Manheim, a subsidiary of Cox Automotive, measures used vehicle pricing trends based on its sales database of millions of vehicles bought by dealerships at auctions. Manheim is the world’s largest wholesale used vehicle marketplace.
According to the Federal Reserve, used car prices are subject to “extreme volatility.” However, the Manheim index adjusts values for seasonality as well as for vehicle class and mileage in order to correct for price deviations based on vehicle mileage or the mix of vehicles for sale.
Per Manheim, the index is “an early indicator of what will be seen in the retail used market.”
