Wholesale used vehicle prices increased 3.31% in the first 15 days of February compared to the month of January bringing the mid-month Manheim Used Vehicle Value Index to 168.4, a 17.4% grain from a year ago, according to Cox Automotive.
The latest trends in the key indicators suggest used vehicle values are likely to continue to see appreciation in the days and weeks ahead, according to Manheim. Traditionally values do increase each spring, but the increases typically start in March and coincide with the distribution of tax refunds.
Manheim Market Report (MMR) prices have accelerated upward over the first two weeks of February, according to the report. The three-year-old MMR Index experienced a 1.0% cumulative increase over the last two weeks.
Over the first 15 days of February, MMR Retention - the average difference in price relative to current MMR - averaged 100.9%. The sales conversion rate has also increased in February. Sales efficiency in the week prior was more than 7 percentage points higher than the average sales efficiency in February 2020.
On a year-over-year basis, all major market segments saw seasonally adjusted price increases in the first 15 days of February. Pickup trucks outperformed the overall market, while most other major segments underperformed the overall market.
Using a rolling seven-day estimate of used retail days’ supply, used retail supply is at normal levels, at 45 days, based on vAuto data. Wholesale supply is slightly up at 24 days for the most recent seven-day period, when normal supply is 23.
The average price for rental risk units sold at auction in the first 15 days of February was up 8% year-over-year and prices were up 1% compared to January. Average mileage for rental risk units in the first half of February (at 52,500 miles) was up 1% compared to a year ago and up 5% month-over-month.