With dealers shifting to “acquisition mode” in October, wholesale prices ended a five-month streak of declines, according to analysis in the Manheim Used Vehicle Value Index released Friday morning.

The report indicates that wholesale values (on a mix-, mileage- and seasonally adjusted basis) climbed last month, following five consecutive months of downward movement.

The Manheim Used Vehicle Value Index for the month came in a 121.8, off 0.4 percent from October 2013.

“After eliminating some inventory-heavy positions in the third quarter, dealers were once again in acquisition mode during October. Sure, non-seasonally adjusted prices fell during the month (they invariably do); but the decline was less than normal and came despite some significant increases in wholesale volumes,” Manheim chief economist Tom Webb said in the report. “Credit higher new-vehicle transaction prices, stable incentive activity, and renewed consumer interest in used vehicles.

“Nevertheless, fundamentals suggest further wholesale price declines are in the offing,” he continued. “It’s just that movements will not be — and never are — a straight line.”

Trend Lines in Rental Risk

Looking specifically at the rental risk segment of the market, Webb spotted a major increase in auction volumes for these units last month due to recall-delayed selling. Not to mention, the average mileage was 44,800 miles, an all-time high. Meanwhile these vehicles’ prices (unadjusted for market class/mileage changes) dropped 6 percent year-over-year.  

On an adjusted basis, they fell 4 percent. 

Vehicle Segment Movement

Prices on pickups jumped 7.0 percent year-over-year to lead the pack, followed by vans with a gain of 2.9 percent. The SUV/CUV class (up 0.3 percent) was the only other area to see an increase in price.

Compact cars fell 3.2 percent, midsize cars dropped 1.8 percent and luxury cars moved down 3.1 percent.  

“Pickups and vans remain the strongest segments year-over-year, while midsize and compact car pricing continues to suffer from competitive new-vehicle pricing and greater consumer interest in the small crossover segment,” Webb said. “The multiyear decline in used luxury car pricing has abated in recent months.”

Webb also pointed out pricing strength for the $8,000 to $10,000 vehicle segment as well as within the higher price tiers.