Wholesale used vehicle prices increased 3.79% month-over-month in February, bringing the Manheim Used Vehicle Value Index to 169.2, a 17.9% increase from a year ago and a record high for the Index, led by a major increase near the month's end, according to Manheim.
Manheim Market Report (MMR) prices strengthened through February, and the three-year-old MMR Index, which represents the largest model year cohort at auction, increased 0.9% in the last week of February, leaving prices up 2.4% over the four weeks of the month, according to the company.
The increase in February was the strongest increase for that week for any year since 2014, Manheim said. Over the month of February, MMR Retention, which is the average difference in price relative to current MMR, averaged 101%. The sales conversion rate also increased for most of the month.
On a year-over-year basis, all major market segments saw seasonally adjusted price increases in February. Pickup trucks outperformed the overall market, while most other major segments underperformed the overall market.
Total used vehicle sales were down 3% year-over-year in February, according to Cox Automotive estimates. Cox estimated that February used SAAR to be 38 million, down from 39.4 million last February and flat compared to January’s 38.1 million rate.
Used retail supply peaked at 115 days on April 8, 2020, where normal used retail supply is about 44 days’ supply, when analyzing a rolling seven-day estimate of used retail days’ supply based on vAuto data. It ended February at 34 days, which is below normal levels.
It is estimated that wholesale supply peaked at 149 days on April 9, 2020, when normal supply is 23. It was down to 23 days by month end.
The average price for rental risk units sold at auction in February was up 11% year-over-year, Manheim said. Rental risk prices were up 4% compared to January. Average mileage for rental risk units in February (at 52,800 miles) was up 2% compared to a year ago and up 6% month-over-month.