Used Vehicle Prices Decline in November

Wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) dropped in November after increases in each of the previous five months. This brought the Manheim Used Vehicle Value Index to a reading of 125.1 for November, an increase of 1.5% from a year ago.

It’s now certain that the full-year 2015 Manheim Index will post an increase on both an annual average and year-over-year basis, according to the company.

In November, a straight average of auction prices for rental risk units was up 3.5% relative to October and up 2.5% year-over-year, according to Manheim. On a mix- and mileage-adjusted basis, prices were up 1.2% during the month and up 0.8% year-over-year.

Relative to the past four years, rental risk prices are now in the high range after dipping in the summer months due to a high volume of older, rough-condition vehicles being sold, says Manheim. Average mileage on rental risk units remained above 45,000 miles in November, as it has for every month this year but one.

As expected, wholesale prices for luxury cars suffered in November due to large volumes. In November, compact cars erased some of the losses they incurred earlier in the year, but they remained the weakest market segment overall, according to Manheim. Prices for pickups and sports cars remained strong in November and for the full year.

A straight average of all auction prices showed less of a bump up in November than in each of the last three years, says Manheim. Average mileage was the lowest since April 2012. The average auction price for dealer-consigned units in November declined relative to October, but it was up about 5% from a year ago.