Wholesale Used Prices Dip

By Staff Writer May 08, 2022

Wholesale used-vehicle prices (on a mix-, mileage- and seasonally adjusted basis) declined 1.0% in April from March. The Manheim Used Vehicle Value Index declined to 221.2, which was up 14.0% from a year ago. The non-adjusted price change in April was an increase of 2.9% compared to March, leaving the unadjusted average price up 16.4% year over year.

Manheim Market Report (MMR) values saw weekly price increases that were strongest to start April and slowed as the month progressed. Over the last four weeks, the Three-Year-Old Index increased a net 1.7%. Over the month of April, daily MMR Retention, which is the average difference in price relative to current MMR, averaged 99.0%, which meant that market prices were slightly behind MMR values. The average daily sales conversion rate increased to 58.4% but was below normal for the time of year.

All major market segments saw seasonally adjusted prices that were higher year over year in April. Following closely to March’s figures, vans again had the largest year-over-year performance, followed by compact cars, while pickups lagged the overall market. On a month-over-month basis, half of the major segments saw seasonally adjusted price declines, with compacts declining the most.

Leveraging a same store set of dealerships selected to represent the country from DealerTrack, Manheim estimates that used retail sales declined 13% in April from March and failed to show the larger seasonal increase driven by tax refund season. The DealerTrack estimates indicate that used retail sales were down 21% year over year. The issuance of tax refunds remains about four weeks behind the normal pace but did reach more than 50% disbursed in April. Based on IRS statistics through April 22, Manheim estimates that 68% of this year’s likely number of tax refunds had been issued, when for the same week in 2019, 97% had been disbursed. The average refund is at a new record and up 5% year over year.

Using estimates of used retail days’ supply based on vAuto data, April ended at 46 days, which was down from 47 days at the end of March but higher than how April ended in 2021 at 35 days.

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Last modified on Thursday, 12 May 2022 14:49