Used Vehicle Value Index Dips

By Staff Writer April 23, 2023 623

Wholesale used-vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) decreased 2.7% from March in the first 15 days of April. The midmonth Manheim Used Vehicle Value Index dropped to 231.7, which was down 4.0% from the full month of April 2022. The seasonal adjustment contributed to the decline. The non-adjusted price change in the first half of April was an increase of 0.6% compared to March, while the unadjusted price was down 5.1% year over year.

Over the last two weeks, Manheim Market Report (MMR) prices were effectively unchanged. Prices usually start to decline in the first two weeks of April, as the average price change for these weeks in the six years from 2014 through 2019 was a decline of 0.3%; but in each of the last two years, prices increased substantially over these same weeks. Over the first 15 days of April, MMR Retention, the average difference in price relative to current MMR, averaged 99%, indicating that valuation models are ahead of market prices. The average daily sales conversion rate of 61.4% in the first half of April declined relative to March’s daily average of 64.9% and was below the April 2019 daily average of 63.6%.

Seven of eight major market segments saw seasonally adjusted prices that were again lower year over year in the first half of April. Pickups had a minimal 0.1% increase, while only midsize and compact cars lost less compared to the overall industry in seasonally adjusted year-over-year changes. The remaining segments lost between 4.6% and 8.6%, with luxury units again faring the worst. Seven of eight major segments saw price decreases compared to March, with losses ranging from 1.2% to 2.9%. Sports cars again were the lone exception, this time with a 1.4% increase from March.

Rate this item
(0 votes)
Last modified on Thursday, 27 April 2023 12:28