ATLANTA -

Manheim’s Tom Webb said Wednesday that October wholesale values ticked either higher or lower depending on if the comparison was based on a seasonal adjustment.

Webb indicated last month’s wholesale prices on a mix-, mileage-, and seasonally adjusted basis rose by 1 percent. Without that seasonal adjustment, the Manheim economist said prices fell by more than 1 percent in October.

What did the data mean to the October Manheim Used Vehicle Value Index? The reading came in at 121.9, which represented a 0.7-percent decline from a year ago.

The reading in both August and September was 120.7. The index hadn’t climbed by this much in a single month since March to April of last year (124.2 to 126.6).

“Traditionally, the biggest seasonal swing in wholesale pricing occurs between September and October. As such, the rise in the seasonally adjusted Manheim Index is proof that once again manufacturers and dealers have had an effective, well-managed, model-year transition,” Webb said.

“Carrryover stocks were lean — and, thus, there was no need for deep discounting,” he continued. “As of Nov. 1, new-vehicle inventory levels have been below 60 days (on a 12-month rolling basis) for the longest period ever.”

Drilling deeper into the data, Webb discovered the greatest pricing strength continues to reside in middle-price tiers.

“As has been the case all year, vehicles in the $8,000 to $11,000 price range attracted the strongest bidding in October,” Webb said. “In recent months, however, the relative market strength between the various price tiers has evened out quite a bit.”

Meanwhile, Webb pointed out that prices for off-rental units remain strong. Manheim determined the average price for rental risk units sold at auction was unchanged between September and October, making it the second consecutive year where there was no seasonal decline.

“Likewise, volumes sold in October did not show a seasonal decline, either,” Webb said. “The average mileage on rental risk units sold at auction continued to decline modestly.”

Looking at pricing trends by vehicle segment, Manheim found that midsize cars showed the greatest pricing strength.

Last month, midsize cars enjoyed a 3.8-percent price rise year-over-year as it was the only segment to post an increase.

“In recent months, as well as over the past year, midsize cars have shown the strongest pricing,” Webb said. “This bread-and-butter segment of the wholesale market has been supported by higher new-vehicle pricing as a result of strong product and smooth model year transitions and growing retail market appeal.”

The other five vehicle segments Manheim tracks sustained price dips in October, ranging from a 0.1-percent downtick for vans and trucks and a 0.2-percent decrease for compact cars to a 4.0-percent softening for luxury cars and a 5.5-percent drop for SUVs and CUVs.

Webb wrapped up his commentary associated with the latest Manheim Index by touching on how Superstorm Sandy dampened retail sales in October.

Webb noted the seasonally adjusted annual rate of new car and light-duty sales was 14.2 million in October, a level he said was down from mid-month estimates in the high 14s and September’s pace of 14.9 million.

“But, as noted last month, September benefited from the presence of five weekends,” Webb said. “For dealers under the influence of Hurricane Sandy, October had, in effect, only three weekends.

“There's a strong consensus that the pace of new-vehicle sales will quickly bounce back in November,” he continued. “Some incentive programs specifically designed to capture the sales lost in October have already been put into place, but it does not appear they will be disruptive to used vehicle pricing.”

As previously reported by Auto Remarketing, Webb mentioned certified pre-owned sales remain on pace for a new record of more than 1.8 million unit sales in 2012.

“CPO sales should get a further boost in coming months as pull-ahead lease programs provide additional CPO inventory,” Webb said.

“On the lower end of the market, dealers are already working the coming tax season with down-payment deferral programs,” he added.

Webb concluded by concurring with other analysts about what Sandy’s final impact might be.

“Most analysts believe that the impact of the hurricane will be to raise wholesale prices. We tend to agree, but believe the effect will be both modest and temporary,” Webb said.