Used Car Sales, Wholesale Prices Dip

By Staff Writer July 08, 2021

Manheim reported wholesale used vehicle prices (on a mix, mileage, and seasonally adjusted basis) decreased 1.3% month-over-month in June. This brought the Manheim Used Vehicle Value Index to 200.4, a 34.3% increase from a year ago.

Manheim Market Report (MMR) prices saw weekly increases in the first two full weeks of June, but the remaining weeks saw accelerated price declines. Over the last five weeks, the Three-Year-Old Index declined a net 0.7%. Over the month of May, MMR Retention, which is the average difference in price relative to current MMR, averaged 99%. The sales conversion rate also slowed as the month progressed and ended the month at a level much more typical for the month of June.

On a year-over-year basis, Manheim reported all major market segments saw seasonally adjusted price increases in June. Pickup trucks outperformed the overall market, while most other major segments underperformed the overall market.

Manheim Used Vehicle Value Index

June 2021 

According to Cox Automotive estimates, total used vehicle sales were down 11.1% year-over-year in June. They estimate the June used SAAR to be 39.0 million, down from 43.6 million last June and down compared to May’s 40.0 million SAAR. The June used retail SAAR estimate is 21.3 million, down from 23.1 million last year and down month-over-month from May’s 21.9 million retail SAAR.

Using a rolling seven-day estimate of used retail days’ supply based on vAuto data, the reports says that used retail supply peaked at 114 days on April 8, 2020. Normal used retail supply is about 44 days’ supply. It ended June at 41 days, which is below normal levels. It estimates that wholesale supply peaked at 149 days on April 9, 2020, when normal supply is 23. It was down to 20 days by month end.

June total new vehicle sales were up 18% year-over-year, with the same number of selling days compared to June 2020. The June SAAR came in at 15.4 million, an increase from last year’s 13.0 million but down from June 2019’s 17.2 million rate.

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Last modified on Thursday, 15 July 2021 15:19