Wholesale: Market News

Wholesale: Market News (49)

Wholesale used-vehicle prices (on a mix, mileage, and seasonally adjusted basis) were down in March compared to February. The Manheim Used Vehicle Value Index (MUVVI) fell to 203.1, a decline of 14.7% from a year ago. The decline in the index was driven by the seasonal adjustment, resulting in a 0.4% month-over-month decrease. The non-adjusted price in March increased by 3.1% compared to February, moving the unadjusted average price down 11.4% year over year.

“Our normal spring bump was a bit muted this year, but the wholesale market progress in terms of timing and weekly changes – it was the most normal pattern we’ve seen in some time,” said Cox Automotive Chief Economist Jonathan Smoke. “From a historical perspective, we typically see a 3.4% increase in March (non-seasonal) and came up with a 3.1% this year. We expect the market and prices to continue a downward trend – demand is tepid at best, as shoppers just don’t have any urgency to buy in the current economic environment.”

Assessing retail vehicle sales based on observed changes in units tracked by vAuto, Cox initially estimates that retail used-vehicle sales in March were up 6% compared to February and higher year over year by 7%. The average retail listing price for a used vehicle was flat over the last four weeks.

Using estimates of used retail days’ supply based on vAuto data, an initial assessment indicates March ended at 42 days’ supply, down five days from 47 days at the end of February but the same level as March 2023 at 42 days.

United Auto Credit Corporation named the Greenville Auto Auction its 2023 Auction of the Year. This award recognizes the exceptional performance and unwavering dedication showcased by the team at Greenville Auto Auction in delivering outstanding service and support to United Auto Credit.

Scott Mousaw, vice president of remarketing and Recovery at United Auto Credit, stated, “Greenville Auto Auction consistently exceeds our expectations and serves as an invaluable partner in our remarketing efforts. Their unwavering commitment to excellence and customer service is evident in the outstanding results they consistently achieve. We are delighted to present them with this well-deserved award.”

In response to this honor, Billy Willis, Greenville’s general manager, said, “Team GAA is humbled and grateful for the opportunity to build a mutually beneficial relationship with United Auto Credit these past couple of years. Our mission is to provide excellent and personal service to our customers. We are honored to accept the 2023 Auction of the Year Award. This honor is a testament to the hard work and dedication of each of our team members.”

Manheim has named four new general managers for its operating locations in Omaha, Houston, Nashville and Philadelphia. These leaders represent six decades of combined experience working closely with Manheim’s clients and teams to achieve mutual success.

“Manheim is fortunate to have strong leadership talent with deep knowledge and experience of our evolving industry and what our clients need to be successful,” said Alan Lang, senior vice president, physical services and auctions at Cox Automotive. “Their career advancements are great examples of how our company grows and develops leaders within our organization.” 

  • Lincoln Hansen has been promoted to general manager of Manheim Omaha. Hansen began his career at Manheim Detroit as a vehicle entry manager before rising to senior recon manager overseeing Retail Reconditioning. In 2018, he assumed the role of assistant general manager at Manheim Orlando and Manheim Central Florida where his responsibilities ranged from arbitration and operations to reconditioning. Since 2023, Hansen has served as assistant general manager of Manheim Phoenix overseeing dealer services and commercial accounts.

 

  • Nick Hanson has been promoted to general manager of Manheim Houston. Hanson began his Manheim career in lot operations in 2005 and has advanced to various roles spanning nearly two decades including lot supervisor, senior operations manager and, most recently, assistant general manager of operations in the Dallas Market Center. He has been integral in the development of several applications and committees created by the Operational Excellence teams including EV safety training and battery testing and recently was recognized as their first Flow Master, a designation of mastery in key capabilities such as creating and leading continuous improvement efforts.

 

  • Steve Robinson has been named general manager of Manheim Nashville. Starting as a driver at Manheim Atlanta over 25 years ago, Robinson’s career has advanced to leadership positions that include assistant general manager at Manheim Harrisonburg and Manheim Statesville, and regional sales director for Manheim’s Southeast and Mid-Atlantic markets. Most recently, he served as general manager of Manheim Omaha and Manheim Iowa. Robinson replaces Sam Chaple who retired earlier this year.

 

  • Jennifer Woodson has been promoted to general manager of Manheim Philadelphia. With a 15-year career in automotive remarketing, Woodson joined Manheim in 2016 as front office supervisor for the opening of Manheim Cleveland. Shortly thereafter, she was named office manager, and then promoted in 2020 to senior client services manager to support the opening of Manheim Rochester. Most recently, she served as the assistant general manager of the Pittsburg Market Center that includes the Cleveland and Rochester locations. Woodson replaces Charlie Pollina who announced his retirement earlier this year.

 

Black Book’s Weekly Market Insights showed momentum is accelerating, evidenced by a +0.39% increase in auction values from last week.

Auction activity is bustling, characterized by strong conversion rates and vigorous bidder participation. The lone area not mirroring this positive trend is the used electric vehicle sector, which persists as the market’s current under performer, with high no-sale rates and declining values.

The Used Retail Days-to-Turn estimate is now sitting around 49 days.

Car Segments:

  • On a volume-weighted basis, the overall Car segment increased +0.33%. For reference, in the previous week, cars increased +0.10%.
  • The 0-to-2-year-old Car segments were up +0.24% and 8-to-16-year-old Cars increased +0.21%.
  • Eight of the nine Car segments increased last week.
  • Last week, the Prestige Luxury Car segment was the sole category to witness a decrease in value, with depreciation deepening by -0.50%, compared to -0.19% the previous week. A notable factor in this heightened rate of depreciation was the decline in the value of the Tesla Model S.
  • The Mid-Size Car segment saw the most significant uptick in value last week, appreciating +0.71%. This surge marks the segment’s largest single week gain since the beginning of March 2023.

Truck/SUV Segments:

  • The volume-weighted, overall Truck segment increased +0.41% compared to the appreciation seen the prior week of +0.15%.
  • The 0-to-2-year-old models gained +0.27% on average and the 8-to-16-year-olds increased by +0.14% on average.
  • Twelve of the thirteen Truck segments increased last week.
  • Last week, the Full-Size Pickup segment saw an acceleration in its value growth, appreciating by +0.31%, which was a notable jump from the previous week’s modest rise of +0.02%.
  • Last week, the Full-Size Crossover/SUV category experienced the most substantial growth, with a +0.91% rise in value. This represents the segment’s biggest one-week surge since spring 2021.

Spring appears to have sprung in the wholesale market, as average prices jumped another 4% month-over-month in February and have continued to rise significantly in March, according to ADESA Chief Economist Tom Kontos and his monthly Kontos Kommentary.

Retail used vehicle and CPO sales also showed February increases. According to ADESA US Analytical Services’ monthly analysis of auction industry used vehicle prices by vehicle model class, wholesale prices in February averaged $14,312 — up 4.0% compared to January, down 9.8% relative to February 2023, and up 31.5% versus pre-pandemic/February 2019.

All model class segments showed month-over-month increases. Average prices have continued to rise so far in March and stood at $14,536 for the week ending March 17.

Average prices for late-model vehicles have continued to rise in March and stood at $25,348 for the week ending March 17, according to Kontos. These rapid price rises are indicative of interest by consumers, and therefore dealers, in more-affordable substitutes for high-priced new vehicles.

Wholesale used-vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) decreased 0.6% from February in the first 15 days of March, according to Cox Automotive. The midmonth Manheim Used Vehicle Value Index dropped to 202.6, which was down 14.9% from the full month of March 2023. The seasonal adjustment drove the decline. The non-adjusted price change in the first half of March rose 2.8% compared to February, while the unadjusted price was down 11.6% year over year.

Over the last two weeks, three-year-old Manheim Market Report (MMR) prices increased an aggregate of 1.3%, which was just below the typical normal increase observed of 1.4% at this time of year. Over the first 15 days of March, MMR Retention, the average difference in price relative to current MMR, averaged 99.9%, indicating that valuation models are very close to market prices.

MMR conversion is up one-tenth of a point against the prior year at the beginning of March. The average daily sales conversion rate of 64.1% in the first half of the month was below the March 2019 daily average of 65.3%. The conversion rate has risen four points from February 2024, indicating that we are seeing stronger-than-normal buying demand as wholesale markets move into spring.

Mid-March 2024.

All major market segments saw seasonally adjusted prices that remained lower year over year in the first half of March. Compared to the industry’s year-over-year decline of 14.9%, luxury was down 13.5%, and SUVs declined 14.5%. Performing worse than the industry, midsize cars were down 16.9%, compact cars were off by 16.6%, and pickups lost 15.6% year over year. However, we did see some major segments showing positive price performance compared to February. While the industry overall was down 0.6% against the prior month, compact cars were up 1.1%, SUVs were up 0.2%, and luxury was flat at 0.0% vs February.

Mid-March 2024.

Midsize cars declined only 0.2%, outperforming the index overall, while trucks fell 0.8%, the only segment faring worse than the industry average. Electric vehicles (EVs) were down 18.8% against values for March 2023, while the non-EV segment declined by 13.1% over the same period. Compared to February, non-EVs declined by 0.3%, while EVs were down 4.9% over the same period.

The car market exhibited a continued slowdown in depreciation with an overall decrease of -0.10%, much less than the previous week’s drop of -0.25%, according to Black Book’s Weekly Market Update released March 5.

The Compact Car segment stood out with a significant +0.41% increase, which is its largest gain since mid-April 2023. The Truck segment experienced a marginal increase in overall depreciation at -0.18%, despite the Minivan category’s growth and the Small Pickup’s consistent rise. Luxury segments, notably Compact Luxury Crossover/SUVs, saw substantial declines, highlighting the mixed performance across vehicle categories.

Car Segments:

  • On a volume-weighted basis, the overall Car segment decreased -0.10%. For reference, in the previous week, cars decreased by -0.25%.
  • The 0-to-2-year-old Car segments were down -0.08% and 8-to-16-year-old Cars declined -0.16%.
  • Eight of the nine Car segments decreased last week.
  • The Compact Car segment saw its value rise for the eighth week in a row, with an increase of +0.41%—the biggest one-week gain for the segment since mid-April 2023. Moreover, Compact Cars of all ages experienced growth last week, with vehicles aged 0-to-2 years going up by +0.38% and those aged 8-to-16 years seeing a smaller, yet positive, uptick of +0.05%.
  • The Near Luxury and Prestige Luxury Car segments both continued to experience significant drops last week, with each segment depreciating by -0.58%.
  • The rate of depreciation for the Sporty Car segment is slowing down, with a modest decrease of -0.05% last week, which is an improvement from the -0.10% decline noted the previous week.

 

Truck / SUV Segments:

  • The volume-weighted, overall Truck segment decreased -0.18% compared to the depreciation seen the prior week of -0.16%.
  • The 0-to-2-year-old models declined -0.11% on average and the 8-to-16-year-olds decreased by -0.12% on average.
  • Two of the thirteen Truck segments increased last week.
  • The Minivan segment’s upward momentum picked up speed last week, with a notable increase of +0.30%, compared to the more modest rise of +0.01% during the previous week.
  • Following four weeks of average growth at +0.17% per week, the Full-Size Crossover/SUV segment experienced a downturn last week, with a decline of -0.28%.
  • The Small Pickup segment continued its upward trend last week, registering a +0.05% increase. This marks the third time in the last four weeks that the segment has seen a rise in value.
  • Each of the Luxury Crossover segments experienced significant drops last week, with the Compact Luxury Crossover/SUV segment leading the downturn with the largest decline of -0.50%.

Recently sold construction equipment, farm machinery, trucks, trailers, RVs, motorsports vehicles, turf equipment and many other types of equipment will be listed in Sandhills Global’s new Auction Values magazine.

The announcement includes the new AuctionValues.com website and the monthly Auction Values magazine, which will debut on March 8th.

AuctionValues.com offers a continuously updated and fully searchable database of auction results aggregated from across the construction, agriculture, and transportation industries, including Sandhills’ online and live simulcast auction platforms, AuctionTime and Equipmentfacts, in addition to other platforms and numerous auction houses in the United States and Canada.

“Auction Values offers unprecedented access to auction prices not only from our own platforms’ auction results, but from sources industrywide,” says Chief Operations Officer Evan Welch. “This is valuable data for auctioneers, dealers, financial institutions, and others who need current, accurate market values to make strategic choices and mitigate risk.”

The Auction Values publication will complement the website and serve as a comprehensive industry guide. Each issue of the magazine will include equipment values at auction from the previous month, a calendar of upcoming AuctionTime and Equipmentfacts auctions, and sections illuminating the latest market trends for heavy- and medium-duty trucks, semitrailers, heavy- and medium-duty construction equipment, tractors, combines, and compact and utility tractors. The magazine will be distributed directly to auctioneers and dealers in the U.S. and Canada.

Last week, fewer market segments showed strength, yet the overall market still shows stability and a slower rate of depreciation compared to the pre-COVID average for this period. Although just two segments demonstrated positive growth last week, the market experienced a lesser rate of depreciation at -0.23%, an improvement from the -0.26% observed the previous week.

Car Segments:

  • On a volume-weighted basis, the overall Car segment decreased -0.17%. For reference, in the previous week, cars decreased by -0.18%.
  • The 0-to-2-year-old Car segments were down -0.17% and 8-to-16-year-old Cars declined -0.16%.
  • Eight of the nine Car segments decreased last week.
  • The Compact Car segment maintained its upward trajectory last week with a +0.08% rise, representing the sixth week in a row of appreciation for vehicles aged between 2 to 8 years old. On average, over the past six weeks, this segment has seen a weekly increase of 0.13%.
  • Standing in stark difference to the Compact segment, the smaller Sub-Compact category is depreciating faster than the broader Car segment. Nonetheless, last week saw a deceleration in its decline to -0.38%, versus its six-week average depreciation rate of -1.01%.

Car segments  week over week


Truck / SUV Segments

  • The volume-weighted, overall Truck segment decreased -0.26% compared to the depreciation seen the prior week of -0.29%.
  • The 0-to-2-year-old models declined -0.15% on average and the 8-to-16-year-olds decreased by -0.28% on average.
  • Only one of the 13 Truck segments increased last week.
  • Last week, the Full-Size Luxury Crossover/SUV segment experienced the steepest drop, depreciating by -0.74%. This represents a sharp increase in the rate of depreciation when compared to the past four weeks’ average weekly rate of -0.05%.
  • For the third consecutive week, the mainstream Full-Size Crossover/SUV category saw an increase, this time by +0.07%. However, this uptick was more modest compared to the previous week’s more substantial gain of +0.38%.
  • Small Pickups in the 0-to-2-year-old used vehicle category posted gains for the second week in a row, increasing by +0.17%.

Truck/SUV segments week over week

 

Overall segments week over week 

Segments 

This Week

Last Week

2017-2019 Average (Same Week)

Car segments

-0.17%

-0.18%

-0.38%

Truck & SUV segments

-0.26%

-0.29%

-0.36%

Market

-0.23%

-0.26%

-0.37%

 

 

The general wholesale market is exhibiting indications of an early spring, with the depreciation rate easing sooner than the pre-pandemic norm for this season. The Compact Car segment stands out particularly, with vehicles across all age brackets experiencing several successive weeks of value increases.

Car Segments:

  • On a volume-weighted basis, the overall Car segment decreased -0.18%. For reference, in the previous week, cars decreased by -0.22%.
  • The 0-to-2-year-old Car segments were down -0.02% and 8-to-16-year-old Cars declined -0.11%.
  • Two of the nine Car segments increased last week.
  • Compact Car continues to increase across all age groupings: 0-to-2-year-olds increased for a fourth consecutive week with a gain of +0.31%, 2-to-8-year-olds increased for a fifth consecutive week, up +0.08%, and 8-to-16-year-olds increased for a sixth straight week, +0.10%.
  • The smaller sibling of Compact Car, the Sub-Compact segment, continues to report large declines, but the rate of decline is slowing, averaging -0.57% over the last two weeks, compared with an average of -1.37% the previous three weeks.
  • Near Luxury Car reported the largest decline last week, down -0.65%.

Truck / SUV Segments:

  • The volume-weighted, overall Truck segment decreased -0.29% compared to the depreciation seen the prior week of -0.38%.
  • The 0-to-2-year-old models declined -0.25% on average and the 8-to-16-year-olds decreased by -0.05% on average.
  • Three of the thirteen Truck segments increased last week.
  • The Full-Size Crossover/SUV segment increased the rate of gain last week, up +0.38%, compared with +0.03% the week prior.
  • Small Pickup also moved into positive territory last week, for the first time since the first week of October 2023, with an increase of +0.26%.
  • Full-Size Truck depreciation continues to slow down, with a minimal -0.12% decline last week, compared to -0.20% the previous week.
  • The Sub-Compact and Compact Crossover segments had the largest drops last week, down -0.71% and -0.70%, respectively.
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