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Wednesday, February 07, 2024

Wholesale Used Car Prices "Flat" in December; Down 9.2% Year-over-year

by Calculated Risk on 2/07/2024 09:10:00 AM

From Manheim Consulting today: Wholesale Used-Vehicle Prices Flat in January

Wholesale used-vehicle prices (on a mix, mileage, and seasonally adjusted basis) were unchanged in January compared to December. The Manheim Used Vehicle Value Index (MUVVI) remained at 204.0 but down 9.2% from a year ago. The index experienced the same 0.0% monthly change from December 2021 to January 2022.

“With the volatility we saw last year, it was a welcome sign for the industry to have a calmer month,” said Jeremy Robb, senior director of Economic and Industry Insights for Cox Automotive. “We observed some price declines in the market in the first couple of weeks of January before the winter storm slowed activity in the wholesale markets during the King holiday week. As activity picked up later in the month, we saw more buying activity, which led to flat values in January. The 0.0% month-over-month change showed stronger values than the 0.2% decline we typically see in January. As we move into tax refund season, we expect to see a bit more activity in the wholesale market, and we maintain that 2024 should show more normal market trends through the year.”

The seasonal adjustment countered the January non-adjusted decrease. The non-adjusted price in January declined by 0.2% compared to December, moving the unadjusted average price down 9.3% year over year.
emphasis added
Manheim Used Vehicle Value Index Click on graph for larger image.

This index from Manheim Consulting is based on all completed sales transactions at Manheim’s U.S. auctions.

The Manheim index suggests used car prices were unchanged in December (seasonally adjusted) and were down 9.2% year-over-year (YoY).