Wholesale used vehicle prices declined 1% in November, continuing the downward trend that was reflected in October by a 0.7% decline, according to Manheim's Used Vehicle Value Index.
While there has been a growth in wholesale supply of used vehicles, the November decline may have been related to new vehicle market activity. To match the activity, the used vehicle market needed to adjust prices quickly as inventory turn remains paramount, stated to the report.
Meanwhile, auction prices for rental risk units in November sold at auction declined 0.6% from October and 4% from a year ago. On an unadjusted basis, prices rose to a new high. Auction volume was significantly higher in November as rental companies were able to off-load units no longer needed in the loaner car or insurance replacement segment. The average mileage on rental risk units sold in November was 16% lower than a year ago.
The used vehicle retail market remained strong in November. After two months of year-over-year declines, CPO sales increased 10% in November. Full-year CPO sales are now set for a record of more than 2.6 million units, according to the report. Total used vehicle sales for franchised and independent dealers are expected to have increased during November.
New car and light duty trucks also sold at a seasonally adjusted annual selling rate (SAAR) of 17.8 million in November. A richer mix that included more trucks and crossovers boosted average transaction prices, but the incentive spend grew much faster. However, despite the strong sales, dealers ended the month with higher-than-desired inventory levels, according to the report.