Wholesale used vehicle prices increased 0.4% in the first 15 days of December compared to the month of November, bringing the mid-month Manheim Used Vehicle Value Index to 162.6, a 15.3% increase from December 2019, according to Manheim.
The Three-Year Old MMR Index (MMR) prices experienced a 0.9% cumulative decline over the last two weeks. Over the first 15 days of December, MMR Retention, which is the average difference in price relative to current MMR, averaged around 100%.
The key indicators suggest non-adjusted used vehicle values will see below average declines in the days ahead.
The non-seasonally adjusted price estimate for mid-December indicated a 0.3% increase from November, according to the report. This was due to more expensive vehicles being sold, especially pickups and SUVs. The first half of December also saw a notable increase in younger vehicles as the share of model-year 2018 vehicles also grew substantially.
On a year-over-year basis, all major market segments saw seasonally adjusted price increases in the first 15 days of December.
Both retail and wholesale supply have increased modestly in recent weeks. Using a rolling seven-day estimate of used retail days’ supply based on vAuto data, data reported that used retail supply is slightly above normal levels, at 49 days. Wholesale supply has increased to 26 days for the most recent seven-day period, when normal supply is 23.
Meanwhile, The average price for rental risk units sold at auction in the first 15 days of December was up 4% year-over-year. Rental risk prices were down 2% compared to November. The average mileage for rental risk units in the first half of December (at 54,000 miles) was up 5% compared to a year ago and flat month-over-month.