On Friday, Cox Automotive released the latest reading of the Manheim Used Vehicle Value Index, and analysts emphasized one point after finalizing their wholesale market data.
“Last year remains a tough comparison for prices as we came off a record in the Manheim Index because of abnormally strong consumer demand in the fall related to tariff fears and rising interest rates,” analysts said in their report that accompanied the November update.
Cox Automotive determined wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) decreased 0.98% month-over-month in November. That movement brought to the index reading to 138.9, a 0.1% decrease from a year ago, and the second consecutive year-over-year decline for the Manheim measurement.
“The accelerating declining trend in weekly Manheim Market Report (MMR) prices that started in September peaked in October and started November still at an above average pace,” Cox Automotive said.
“However, by the last week in November, price declines normalized and even saw gains for a few segments,” analysts continued. “Three-year-old vehicle values in aggregate were down 1.6% for the month.
“As a result of the higher depreciation pattern from September through mid-November, prices in aggregate relative to the beginning of the year continue to be lower than either of the last two years,” Cox Automotive went on to say.
Looking at the data by vehicle segments, Cox Automotive noticed cars moving in opposite directions. While values for midsize cars rose 3.1% year-over-year in November, prices for compact cars softened 5.4% based on the same time comparison.
Analysts noticed prices for the luxury cars inched up 0.1% year-over-year in November while the other three segments they watch all dipped. SUV/CUVs edged 1.0%, following by pickups giving up 2.0% and vans dropping by 4.4%.
To round out its look at the wholesale market, Cox Automotive touched on rental-risk units.
Analysts determined the average price for rental risk units sold at auction in November rose 1.2% year-over-year. But rental risk prices softened 0.6% compared to October.
Cox Automotive added that average mileage for rental risk units in November (at 48,900 miles) climbed 4% compared to a year ago and 2% month-over-month.