Wholesale used vehicle prices increased by 1.6% in the first half of November while the Manheim Used Vehicle Value Index (MUVVI) reached 206.1, up 0.5% gain from the full month of November 2023.
The seasonal adjustment for the month amplified the results, as the seasonal factors moved the needle closer to the long-term average for November. Non-adjusted prices in the first half of November rose by 0.2% compared to October but were down 0.6% year over year.
Jeremy Robb, senior director of Economic and Insights at Cox Automotive, pointed out that the supply for wholesale and retail used-vehicle markets has decreased over the last month. However, the increase in sales conversion over the previous six weeks has led to a rise in wholesale prices in early November. Notably, retail used-vehicle sales have also seen a significant increase, indicating a growing dealer demand for wholesale units.
The Manheim Market Report (MMR) for three-year-old vehicles revealed a combined decline of 0.3%, well below the characteristic decrease of 1% this time of year.
The average daily sales conversion rate for the first half of November was 59.9%, a 3-point increase from October. This significant rise in the conversion rate is a clear indicator of the strengthening buyer demand in the market.
The major market segments saw mixed results. As far as year-over-year performance is concerned, standout gains were in midsize cars, which rose by 1%, a half-point gain on the industry average. The luxury and pickup truck segments saw the most decline. Month-over-month gains were seen across all segments, led by SUVs, which grew by 1.7%, a 0.1% increase over the industry average.
The electric vehicle (EV) segment continued to exhibit high depreciation levels. It was down 11% year over year despite seeing a slight 0.6% increase from October. However, non-EVs showed stronger gains and increased by 0.2% in the same period and 1.6% in October.
As of November 15, the wholesale supply decreased by one day from the end of October to 27, which is down one day compared to last year.
Consumer Sentiment increased by 3.5% to 73.0 after the initial November survey. This increase is stronger than anticipated and is 19% year over year. Rising consumer sentiment, better perceptions of buying conditions, and a decrease in gasoline prices are stimulating sales.
