According to the latest data from Cox Automotive, wholesale used-vehicle prices saw a slight uptick of 0.4% in January compared to December. The Manheim Used Vehicle Value Index (MUVVI) increased to 205.6, a 0.8% increase year-over-year. Seasonal adjustments tempered price movement, but non-adjusted wholesale prices rose 0.6% month-over-month and 1.1% year-over-year.
Senior Director of Economic and Industry Insights at Cox Automotive, Jeremy Robb, noted that wholesale values increased in January more than the historical trend, and the index is at the highest point since October 2023.
The Manheim Market Report (MMR) values revealed fluctuations throughout the month but ended on a high note with a 0.4% increase in the final week. Daily MMR Retention averaged 98.8%, with market prices moving away from MMR values. The used-vehicle retail days’ supply was nine days lower than last year, indicative of tighter inventory conditions. Conversion rates improved to 58.8%, up 5.7% month-over-month, and slightly higher than those typically recorded in January. Â
Luxury vehicles led the market, rising 2% year-over-year, while SUVs increased 1.2%. Mid-size sedans, trucks, and compact cars performed below the industry averages, with compact cars dipping 3.4% year-over-year.
Month-over-month, luxury vehicles increased 2.7%, while trucks and compact cars dropped 1.8% and 2.1%, respectively. Electric vehicles (EVs) outpaced the broader market with a 2.1% increase month-over-month, marking the third consecutive increase. However, EV values remain 5.1% lower than in January 2024.
Retail use-vehicle sales rose 6.2% month-over-month and 15% year-over-year. Average retail listing prices declined 1.3% over the last four weeks, signaling potential pricing adjustments. Retail day’s supply ended at 47 days, down from 50 in December and 56 in January 2024. Fleet sales declined slightly by 0.9%.
According to The Conference Board’s monthly survey, consumer confidence fell by 4.9% in January, marking the first year-over-year drop since September. Consumers expressed concerns surrounding inflation increases, and vehicle purchase intentions fell to the lowest since August. Additionally, national gas prices increased to $3.10 per gallon, a 1.3% increase from December. However, these prices are still down 2% year-over-year.
The wholesale market showed unexpected strength in January, benefiting from tighter supply and seasonal trends. The luxury and electric vehicle segments stood out, while compact cars and mid-size sedans struggled. Retail sales gains indicate persistent consumer interest despite economic uncertainty.
atd_callout id=”1″]
