Click to Enlarge.
Wholesale used-vehicle prices* were higher in August compared to July. The Manheim Used Vehicle Value Index (MUVVI)** rose to 203.9, a decline of 3.9% from a year ago. The seasonal adjustment to the index mitigated the impact on the month, resulting in values that rose 1.2% month over month. The non-adjusted price in August increased by 2.2% compared to July, moving the unadjusted average price down 4.6% year over year. The data are from the Manheim Market Report (MMR) from Cox Automotive.*** New-vehicle sales in August were up 7.6% from last year, and volume increased 11.2% from July. The August seasonally adjusted annual rate (SAAR), came in at 15.1 million, down 0.2 million from last year’s pace and lower than July’s 15.8 million.
“The trend of higher wholesale values at Manheim continued into August from July, as we saw prices appreciate every week except the last,” said Jeremy Robb, senior director of Economic and Industry Insights at Cox Automotive. “Sales conversion continued to rise and held at much higher levels than prior years for the month as more buyers came to markets to replenish supply for used retail inventory. We know lease maturities are on the decline, and used retail days’ supply has tightened over the last month. That will likely keep pressure on buyers at Manheim in the next several weeks.”
Data Points
During August, daily MMR Retention, which is the average difference in price relative to the current MMR, averaged 98.9%. This indicates market prices stayed below MMR values again this month yet moved closer to market valuations for the second month in a row. Compared to last month, valuation models moved up three-tenths of a point on MMR retention. The average daily sales conversion rate rose to 63.3%, a rise of over 4 full points against last month and higher than normal for this time of year. For comparison, the daily sales conversion rate averaged 55.7% in August over the previous three years.
In August, Manheim Market Report (MMR) values saw weekly increases every week of August except the last week, clearly higher than what is normal in the month. Over the previous five weeks, the Three-Year-Old Index increased an aggregate of 0.8%, including a decline of 0.2% in the last week of the month. Those same four weeks delivered an average decrease of 1.0% between 2014 and 2019, illustrating that the appreciation trend for the month of August contrasted against long-term averages for the year.
During August, daily MMR Retention, which is the average difference in price relative to the current MMR, averaged 98.9%, meaning market prices stayed below MMR values again this month yet moved closer to market valuations for the second month in a row. Compared to last month, valuation models moved up three-tenths of a point on MMR retention. The average daily sales conversion rate rose to 63.3%, a rise of over 4 full points against last month and higher than normal for this time of year. For comparison, the daily sales conversion rate averaged 55.7% in August over the previous three years.
All major market segments experienced seasonally adjusted prices that were down year over year in August, with clearly slowing patterns in market depreciation over the last two months. Compared to August 2023, luxury was lower by only 2.9%, and mid-size sedans declined by 3.9%, outpacing the industry overall. In other segments, SUVs were down 4.3%, with pickups falling by 5.5% and compact cars declining 5.6% against the prior year. Compared to the previous month, all segments were higher, with luxury rising the most, up 3.5%, followed by mid-size sedans at 1.6% higher. Increasing less than the overall average, SUVs rose by 1.1%, and pickups were up just 0.3%, with compacts increasing the least, rising by only 0.2% month over month.
Analyzed by powertrain, both electric vehicles (EVs) and non-EVs were higher compared to July. Seasonally adjusted EV values for August 2024 were down 7.2% year over year, while non-EVs were down only 3.0%, highlighting the higher depreciation EVs have seen over the last 12 months. Looking at the change against July, seasonally adjusted EV values increased more than the overall market, rising by 4.4% from July 2024, while non-EVs increased 1.8% over the same period.
Retail used-vehicle sales increased in August. Assessing retail vehicle sales based on observed changes in units tracked by vAuto, the initial estimate for retail used-vehicle sales in August was up 34% compared to July and higher year over year by 21%. The average retail listing price for a used vehicle increased 1.6% over the last four weeks.
* This is on a mix, mileage, and seasonally adjusted basis.
**Manheim Used Vehicle Value Index
By applying statistical analysis to its database of more than 5 million used vehicle transactions annually, Manheim has developed a measurement of used vehicle prices that is independent of underlying shifts in the characteristics of vehicles being sold. The Manheim Index is increasingly recognized by both financial and economic analysts as the premier indicator of pricing trends in the used vehicle market, but should not be considered indicative or predictive of any individual remarketer’s results.
***Cox Automotive
Cox Automotive says it is the world’s largest automotive services and technology provider. Fueled by the largest breadth of first-party data fed by 2.3 billion online interactions a year, Cox Automotive tailors leading solutions for car shoppers, automakers, dealers, retailers, lenders, and fleet owners. The company has 25,000-plus employees on five continents and a family of trusted brands that includes Autotrader®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital™, and vAuto®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately owned, Atlanta-based company with $22 billion in annual revenue. Visit coxautoinc.com or connect via @CoxAutomotive on X, CoxAutoInc on Facebook, or Cox-Automotive-Inc on LinkedIn.
AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Manheim – U.S. Wholesale Used Vehicle Prices Up In August
Click to Enlarge.
Wholesale used-vehicle prices* were higher in August compared to July. The Manheim Used Vehicle Value Index (MUVVI)** rose to 203.9, a decline of 3.9% from a year ago. The seasonal adjustment to the index mitigated the impact on the month, resulting in values that rose 1.2% month over month. The non-adjusted price in August increased by 2.2% compared to July, moving the unadjusted average price down 4.6% year over year. The data are from the Manheim Market Report (MMR) from Cox Automotive.*** New-vehicle sales in August were up 7.6% from last year, and volume increased 11.2% from July. The August seasonally adjusted annual rate (SAAR), came in at 15.1 million, down 0.2 million from last year’s pace and lower than July’s 15.8 million.
“The trend of higher wholesale values at Manheim continued into August from July, as we saw prices appreciate every week except the last,” said Jeremy Robb, senior director of Economic and Industry Insights at Cox Automotive. “Sales conversion continued to rise and held at much higher levels than prior years for the month as more buyers came to markets to replenish supply for used retail inventory. We know lease maturities are on the decline, and used retail days’ supply has tightened over the last month. That will likely keep pressure on buyers at Manheim in the next several weeks.”
Data Points
During August, daily MMR Retention, which is the average difference in price relative to the current MMR, averaged 98.9%. This indicates market prices stayed below MMR values again this month yet moved closer to market valuations for the second month in a row. Compared to last month, valuation models moved up three-tenths of a point on MMR retention. The average daily sales conversion rate rose to 63.3%, a rise of over 4 full points against last month and higher than normal for this time of year. For comparison, the daily sales conversion rate averaged 55.7% in August over the previous three years.
In August, Manheim Market Report (MMR) values saw weekly increases every week of August except the last week, clearly higher than what is normal in the month. Over the previous five weeks, the Three-Year-Old Index increased an aggregate of 0.8%, including a decline of 0.2% in the last week of the month. Those same four weeks delivered an average decrease of 1.0% between 2014 and 2019, illustrating that the appreciation trend for the month of August contrasted against long-term averages for the year.
During August, daily MMR Retention, which is the average difference in price relative to the current MMR, averaged 98.9%, meaning market prices stayed below MMR values again this month yet moved closer to market valuations for the second month in a row. Compared to last month, valuation models moved up three-tenths of a point on MMR retention. The average daily sales conversion rate rose to 63.3%, a rise of over 4 full points against last month and higher than normal for this time of year. For comparison, the daily sales conversion rate averaged 55.7% in August over the previous three years.
All major market segments experienced seasonally adjusted prices that were down year over year in August, with clearly slowing patterns in market depreciation over the last two months. Compared to August 2023, luxury was lower by only 2.9%, and mid-size sedans declined by 3.9%, outpacing the industry overall. In other segments, SUVs were down 4.3%, with pickups falling by 5.5% and compact cars declining 5.6% against the prior year. Compared to the previous month, all segments were higher, with luxury rising the most, up 3.5%, followed by mid-size sedans at 1.6% higher. Increasing less than the overall average, SUVs rose by 1.1%, and pickups were up just 0.3%, with compacts increasing the least, rising by only 0.2% month over month.
Analyzed by powertrain, both electric vehicles (EVs) and non-EVs were higher compared to July. Seasonally adjusted EV values for August 2024 were down 7.2% year over year, while non-EVs were down only 3.0%, highlighting the higher depreciation EVs have seen over the last 12 months. Looking at the change against July, seasonally adjusted EV values increased more than the overall market, rising by 4.4% from July 2024, while non-EVs increased 1.8% over the same period.
Retail used-vehicle sales increased in August. Assessing retail vehicle sales based on observed changes in units tracked by vAuto, the initial estimate for retail used-vehicle sales in August was up 34% compared to July and higher year over year by 21%. The average retail listing price for a used vehicle increased 1.6% over the last four weeks.
* This is on a mix, mileage, and seasonally adjusted basis.
**Manheim Used Vehicle Value Index
By applying statistical analysis to its database of more than 5 million used vehicle transactions annually, Manheim has developed a measurement of used vehicle prices that is independent of underlying shifts in the characteristics of vehicles being sold. The Manheim Index is increasingly recognized by both financial and economic analysts as the premier indicator of pricing trends in the used vehicle market, but should not be considered indicative or predictive of any individual remarketer’s results.
***Cox Automotive
Cox Automotive says it is the world’s largest automotive services and technology provider. Fueled by the largest breadth of first-party data fed by 2.3 billion online interactions a year, Cox Automotive tailors leading solutions for car shoppers, automakers, dealers, retailers, lenders, and fleet owners. The company has 25,000-plus employees on five continents and a family of trusted brands that includes Autotrader®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital™, and vAuto®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately owned, Atlanta-based company with $22 billion in annual revenue. Visit coxautoinc.com or connect via @CoxAutomotive on X, CoxAutoInc on Facebook, or Cox-Automotive-Inc on LinkedIn.
AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.