Dealers' #1 source for auto industry news, content, coaching & analysis

Wholesale used vehicle prices rose in early November

Wholesale used-vehicle prices rose in early November, driven by tight supply, strong dealer demand, and improving consumer sentiment.

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.   

Stay up to date on exclusive content from CBT News by following us on Facebook, Twitter, Instagram and LinkedIn.

Don’t miss out! Subscribe to our free newsletter to receive all the latest news, insight and trends impacting the automotive industry.

CBT News is part of the JBF Business Media family.

Jasmine Daniel
Jasmine Daniel
Jasmine Daniel is a staff writer and reporter for CBT News. She holds a BFA in Writing from the Savannah College of Art & Design and has over eight years of experience in SEO, digital marketing, and strategic communication. Her storytelling skills bring breaking news to life, delivering timely, impactful stories that resonate with readers.

Related Articles

Manufacturers In This Article

More Manufacturer News

Latest Articles

From our Publishing Partners