Data from the nation’s leading provider of end-to-end wholesale vehicle solutions shows wholesale prices for cars increased over the past year.
Specifically, the Manheim Used Vehicle Value Index showed a 14.2% gain from a year ago. The index is a unit that quantifies factors to show the overall state of the used car market. Studying it indicates trends in wholesale prices for cars.
According to Cox Automotive, most major market segments saw seasonally adjusted wholesale price increases in December on a year-over-year basis. Luxury cars and pickup trucks outperformed the overall market, while most other major segments underperformed the overall market.
Cox Automotive Chief Economist Jonathan Smoke said there’s no evidence of a looming correction in the market.
“Supply remains tight, and demand remains strong despite some softening this fall,” he said.
Cox Automotive is estimating total used-vehicle sales in 2020 at 36.7 million, down 8% from the 40 million in 2019. Retail used-vehicle sales in 2020 are estimated to be 19.5 million, down from 20.8 million in 2019.
Manheim data also showed trends in used vehicle inventory. Used retail supply peaked at 115 days on April 8. Normal used retail supply is about 44 days’ supply. It ended December at 49 days, slightly above normal levels. Wholesale supply peaked at 149 days on April 9, when normal supply is 23. December ended with 47 days’ supply, as the wholesale sales pace slowed.