MANHEIM INDEX SHOWS HISTORIC WHOLESALE PRICE INCREASE IN OCTOBER
Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) increased 9.2% month over month in October. This brought the Manheim Used Vehicle Value Index to 223.7, a 38.1% increase from a year ago. Some of the monthly increase is a result of the seasonal adjustment, as October typically sees above-average vehicle depreciation and therefore used price declines. This October was the first October in the history of the Manheim Index data, which dates to 1997, to see a non-seasonally adjusted price increase in October. The non-adjusted price increase in October was 5.4%.
Cox Automotive Chief Economist Jonathan Smoke explains: “The October results were surprising. We had expected gains, but demand was much stronger throughout the month. October is normally a month that we see some of the least aggressive buying at wholesale by dealers because the used retail market is typically the slowest in the last months of the year. Usually, the new market gets all of the retail attention in the fall because of new models being rolled out and old models being discounted. That’s not the case this year as the production and supply chain problems have led to record low inventories and positioned the used market to be even stronger.” See the Data Point for more details and commentary.