Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) increased 6.6% comparing the first 15 days of June to the month of May, according to data published by Manheim.
This brought the mid-month Manheim Used Vehicle Value Index to 146.1, a 4.0% increase from June 2019.
Manheim Market Report (MMR) prices improved over the last two weeks, resulting in a 3.7% cumulative increase in the first two weeks of June on the three-year-old Index. Over the first 15 days of June, MMR Retention, which is the average difference in price relative to current MMR, was above 100% for all but one day and averaged above 102.8%.
The MMR Retention trend reflected that vehicles were selling above current MMR values and performances in May and June have been more reminiscent of a typical March and April.
On a year-over-year basis, most major market segments saw seasonally adjusted price increases in the first 15 days of June. Luxury cars outperformed the overall market, while most other major segments underperformed the overall market.
As used retail sales continue to recover, both retail and wholesale supply are coming down. Manheim’s report found that used retail supply peaked at 115 days on April 8. Normal used retail supply is about 44 days’ supply. The most recent seven-day estimate of used retail supply is at 31 days.
The average price for rental risk units sold at auction in the first 15 days of June was up 0.5% year-over-year. Average mileage for rental risk units in the first half of June (at 40,500 miles) was down 13% compared to a year ago and down 12% month-over-month.