
During the first 15 days of December, the Manheim Used Vehicle Value Index hit 239.8, a 49% increase from December 2020.
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Wholesale prices appear to have peaked the week before Thanksgiving as weekly prices have declined slightly in each of the last two weeks. But retail prices continue to increase.
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Meanwhile, used supply normalizes, rental risk pricing declines, and auto loan performance deteriorates.
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October figures show buyers are much more aggressive in purchasing than is typically the case in the fall. Combined sales into large rental, commercial, and government buyers were down 24% year-over-year in October.
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The sales conversion rate also increased last month and ended at a level higher than typical for August, indicating buyers have become more aggressive than they were in June and July.
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On a year-over-year basis, all major market segments saw seasonally adjusted price increases in July.
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For April, Manheim’s rental risk unit share fell to the lowest level since 2002. Rental car companies are net buyers, not sellers, of wholesale used vehicles right now, says Cox Automotive’s Jonathan Smoke.
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The latest trends in the key indicators suggest used vehicle values are likely to continue to see appreciation in the days and weeks ahead.
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Wholesale prices continued to gain strength for the first week of February in what Black Book Market Insights said is starting to look like the beginning to an early start to the Spring market.
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Wholesale used vehicle prices increased 0.4% in the first 15 days of December compared to the month of November, bringing the mid-month Manheim Used Vehicle Value Index to 162.6, a 15.3% increase from December 2019.
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