Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) increased 8.3% in the first 15 days of October compared to the month of September. This brought the Manheim Used Vehicle Value Index to 221.8, a 37% increase from October 2020.
MANHEIM USED VEHICLE VALUE INDEX
Manheim Market Report (MMR) prices saw strong gains through the first two full weeks of October. The Three-Year-Old MMR Index, which represents the largest model year cohort at auction, experienced a 2.9% cumulative increase over the last two weeks. Over the first 15 days of October, MMR Retention, which is the average difference in price relative to current MMR, averaged 101%, which indicates that valuation models are not keeping pace with the increase in market prices. The sales conversion rate increased in the first half of October to a 68% average relative to 61% in September and is at an elevated level for this time of year. In October 2019, sales conversion averaged 49%. The latest trends in the key indicators suggest wholesale used vehicle values will likely see further gains in the days ahead.
On a year-over-year basis, all major market segments saw seasonally adjusted price gains through the first 15 days of October. Pickups had the smallest year-over-year gains while vans had the largest at 49.4%. Compared to September, luxury cars had the smallest growth in the first half of October while compact cars had the largest gain.
The complete suite of monthly MUVVI data for September will be released on Friday, Nov. 5, 2021, the fifth business day of the month as regularly scheduled. If you have any questions regarding the Index, please contact the Cox Automotive Industry Insights team at Manheim.Data@coxautoinc.com.
The next Manheim Used Vehicle Value Index quarterly call is scheduled for Friday, Jan. 7, 2022.