It was an unseasonably balmy February day in Atlanta on Tuesday.
Coincidentally, the respective monthly used-car value indices released by two companies headquartered in the area showed signs of warming in the wholesale vehicle market, even “hints” of spring.
While both Black Book’s Used Vehicle Retention Index and Cox Automotive’s Manheim Used Vehicle Value Index were down double-digit percentages from a year ago, each pointed to signs of a thawing market.
Among those …
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For dealers looking to obtain used-car inventory at lower prices than they did in 2022, the year appears off to a good start.
And weary consumers scouring dealer lots for good pre-owned car deals after two years of wildly high prices are starting to find some relief, as well.
Though up 1.5% from December, wholesale vehicle prices through the first half of January are …
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December marked the largest annualized decrease in the history of the Manheim Used Vehicle Value Index.
However, this downturn comes at the end of an “extremely volatile” three years for the used-car market, which saw historic increases in price the year before, says Jonathan Smoke, chief economist of Manheim parent Cox Automotive.
And that volatility should subside this year, Smoke said.
“It’s undeniable that 2022 culminates with unprecedented declines in the MUVVI, but it’s important to look at the bigger picture,” Smoke said in a news release. “These last three years have been extremely volatile for the market, and these declines follow record increases.
“In December 2021, we were up 47% year-over-year. The pre-pandemic levels will likely never return, but all indicators point to reaching equilibrium in the second half of 2023,” he said.
As for last month, the index reached 219.3, which was up 0.8% month-over-month on a seasonally adjusted basis and fell 14.9% year-over-year — the latter being the largest yearly drop in the index’s history, Cox said.
Without the adjustments, the index fell 1.9% month-over-month and fell 13.1% year-over-year.
This movement follows a November that was somewhat historic, as well.
The Manheim Used Vehicle Value Index came in at 199.4 in November, which on an adjusted basis represents at 14.2% year-over-year drop and a 0.3% sequential drop.
Unadjusted, Manheim’s index was down 1.6% from October and 12.4% from November 2021.
The Manheim index was at a 15-month low in November. It was also the first time in 16 months that the index came in below 200.
Looking forward, Cox is projecting that by December of this year, the index will be down another 4.3% from where it was last month.
Whether it was a sign of things getting back to normal or a function of external and internal market factors, one thing was sure about December’s wholesale price movement: it looked a lot like the close of 2019.
That was apparent in Black Book’s analysis around its latest Used Vehicle Retention Index, which came in at 169.5 for December.
That marked a 1.1% month-over-month decrease and a 13.4% year-over-year slide, Black Book said. The index was 47.9% higher than the March 2020 reading, just before the pandemic.
December was also the third straight month of year-over-year declines in the Black Book index. It was also the lowest reading of the index since September 2021, when the index also came in at 169.5, according to Black Book
“Wholesale prices for the 2-6-year-old vehicle segments that comprise of Black Book’s Used Vehicle Retention Index declined in December at a rate similar to what we saw in 2019, right before the pandemic started,” Black Book chief data science officer Alex Yurchenko said in a news release.
“With consumer confidence low and overall uncertainty about the economy, dealers were cautious with their acquisitions,” Yurchenko said. “Conversion rates at auctions declined dramatically last month. Moreover, with the need to move inventory faster and improve demand, dealers accelerated the reduction of retail listing prices.”
Auto Remarketing will have more on December’s wholesale price movement as economists and analysts across the industry release their respective monthly reports.
That consumer who has put off buying a used car until prices ease may now be more eager to make a purchase.
New-car incentives are at their lowest levels in 12 years, according to TrueCar, which predicts December incentives will average just over $1,000. That’s down from $2,000 in 2021 and $4,000 just three years ago, the company said, citing its own data and Motor Intelligence.
Average new-car prices came in at $48,100 last month, a 0.7% uptick from October and a 4.3% hike from November 2021, according to TrueCar.
Meanwhile, used-car prices …
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Black Book’s measure of used-car prices was still up 11% last month and remains 61% higher than pre-pandemic levels.
But here’s some news that may be less scary for dealers: August’s reading of the company’s Used Vehicle Retention Index was at its lowest level since October, coming in at …
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The used-car shopper who arrives on a dealer’s lot or online listings looking for a vehicle that will save them money at the gas pump may end up spending quite a bit more elsewhere.
Specifically, on the transaction itself.
While the overall retail used-car market showed sequential price stability last month, with some segments’ prices declining for the first time this year, says iSeeCars.com, alternative-fuel segments are …
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Summer temperatures have heated up, and so too, have wholesale values.
Used-car prices have started July up slightly from June on an adjusted basis and maintain a sizable premium over where they were ago.
That’s according to the mid-month reading of Cox Automotive’s Manheim Used Vehicle Value Index, which came in at …
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After three months of sequential declines, wholesale vehicle prices edged higher in May and remain well above year-ago levels.
The Manheim Used Vehicle Value Index was at
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Amid skyrocketing used- and new-car prices, some consumers mulling a vehicle purchase may choose just to wait it out, instead.
Businesses who need vehicles for their daily operations don’t have that option.
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