Wholesale Prices Show Strength in Mix
Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) increased 0.4% in the first half of December compared to the month of November. This brought the mid-month Manheim Used Vehicle Value Index to 162.6, a 15.3% increase from December 2019.
Average price increases in December is attributed to more expensive vehicles being sold, primarily SUVs and pickups. On a year-over-year basis, all major market segments saw seasonally adjusted price increases in the first half of December. Luxury cars and pickup trucks outperformed the overall market, while most other major segments underperformed the overall market.
Both retail and wholesale supply have increased modestly in recent weeks. Using a rolling seven-day estimate of used retail days’ supply based on vAuto data, Manheim saw used retail supply is slightly above normal levels, at 49 days. Wholesale supply has increased to 26 days for the most recent seven-day period, when normal supply is 23.