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, according to a Cox Automotive news release Oct. 19. This brought the Manheim Used Vehicle Value Index to 221.8, a 37% increase from October 2020.
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.