Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) decreased 0.8% in the first 15 days of August compared to the month of July, Manheim reported Aug. 17. This brought the Manheim Used Vehicle Value Index to 193.7, a 18.3% increase from August 2020.
Manheim Market Report (MMR) prices saw mixed trends in the first two weeks of August. The Three-Year-Old MMR Index, which represents the largest model year cohort at auction, experienced a 0.4% cumulative increase over the last two weeks. Over the first 15 days of August, MMR Retention, which is the average difference in price relative to current MMR, averaged 99.3%, which indicates that valuation models are moving very closely with market prices.
The sales conversion rate increased in the first half of August relative to July and is now higher than normal for this time of year. The latest trends suggest wholesale used vehicle values will likely see lower than normal depreciation 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 August. Compact cars had the smallest year-over-year gains, while sports cars and vans had the largest. Compared to July, pickups had the largest declines in the first half of August, while vans had the largest gains.