Used Vehicle Market Conditions
Average wholesale prices softened modestly through year-end after reaching new highs in early November. Prices remained dramatically higher than a year-ago and at pre-pandemic levels, as demand continues to outstrip supply.
According to KAR Global Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale prices in November averaged $16,163, down 0.9% compared to October, up 32.9% relative to November 2020, and up 48.0% versus pre-COVID/November 2019. Wholesale prices in December averaged $16,026, down 0.8% compared to November, up 34.8% relative to December 2020, and up 48.1% versus pre-COVID/December 2019. The year-end price moderation generally affected all model classes equally but left prices for all segments well above year-ago and pre-pandemic levels.
Based on NADA data, retail used vehicle sales by franchised and independent dealers in November (latest available) were down 7.9% month-over-month but up 11.4% year-over-year. Year-to-date through November, sales were up 9.7% versus 2020 and up 1.9% compared to 2019/pre-pandemic levels. CPO sales fell 16.5% month-over-month in November and recovered only modestly (up 2.5% m/m) in December, according to figures from Autodata. CPO sales on a year-to-date basis through December, were up 5.1% compared to 2020 but down 2.5% versus 2019.