ATLANTA -

Hurricane Sandy impacted yet another wholesale market indicator; this time the Manheim Used Vehicle Value Index.

Manheim’s Tom Webb determined wholesale prices on a mix-, mileage- and seasonally adjusted basis rose by 0.6 percent in November. But without the seasonal adjustment, prices were unchanged.

As a result, the Manheim Index reading for November stood at 122.6, which represented a 1-percent dip from a year ago, a 25-percent jump from the trough in December 2008 and a 4-percent decline from the all-time high reached in May of last year.

“Hurricane Sandy lifted used vehicle values in November by both reducing supply and increasing demand,” Webb said. “Those forces will continue into December and the early part of 2013, and may mitigate some of the volatility that a possible shift in retail demand might cause.”

Looking at the wholesale price movement by market segment, Manheim noticed pickups showed pricing strength.

Pickup prices jumped 2 percent in November, according to analysts. The only other segment to move higher year-over-year was midsize cars, which managed a 0.8-percent uptick.

“Wholesale pricing for pickups has remained strong in recent months as increased activity in the building and services trades has supported retail demand,” Webb said.

“The heavy overhang of inventory in the new pickup truck market has had little impact on wholesale values since the auction activity in this segment is concentrated on older units with more than 100,000 miles,” he continued.

Meanwhile, Manheim pointed out prices for luxury cars softened by 4.2 percent in November. Also declining were prices for compact cars (down 2.3 percent), SUVs and CUVs (down 1.8 percent) as well as vans (down 1.3 percent).

“Auction activity in the luxury car segment includes a lot of fully reconditioned, late-model, end-of-term lease units and company cars,” Webb said. “As such, wholesale prices have recently been kept in check by promotional activity occurring in the market for new luxury cars.”

Turning next to rental risk units, Webb explained that volumes are down but pricing is stable.

“Due to the predictable increase in long-term rentals following Hurricane Sandy, most rental car companies partially delayed scheduled defleeting,” Webb said.

“Average auction prices for the available units remained steady in the $15,000 range, suggesting that is the ceiling currently being imposed by the new-vehicle market,” he added.

Continuing analysis about Sandy, Webb touched on how increases in used-vehicle replacement demand were triggered by the storm.

The Manheim economist cited CNW Research data that indicated used-vehicle retail sales rose 15 percent in November with the dealer segment ringing up an “exceptionally strong” 31-percent gain. Webb noted full-year sales are now set to reach the 41-million mark for the first time since 2007.

“Although the fundamental drivers of used vehicle retail demand (especially credit availability) are likely to remain favorable in 2013, resolution of the fiscal cliff could have an impact on next year's sales activity,” Webb said.

“There is a better-than-even chance that income tax rates on the middle class (the bulk of used-vehicle buyers) will not go up next year,” he continued. “However, the future of the ‘temporary’ 2 percentage point reduction in the payroll tax is less certain.

“One can argue whether the lower payroll tax is good economic policy, but one cannot deny that it has been beneficial to used vehicle sales,” Webb went on to say.

Manheim’s economist wrapped up his latest analysis by delving into the new-vehicle market, mentioning how the new-vehicle selling rate surged to 15.5 million in November.

“New-vehicle sales in November were boosted by the pickup of sales that were lost in the final days of October due to Hurricane Sandy and by the replacement demand that was created by the storm. The benefit of higher replacement demand will continue in December and January,” Webb said.

“Despite the high new-vehicle sales pace (averaging close to 15 million over the past three months), there have been pockets of excessive inventory builds. Incentives have risen modestly (with more likely to come),” he continued. “But it appears that manufacturers are also willing to adjust production levels, which will help future used-vehicle residuals.”