Wholesale used vehicle prices increased 5.84% month over month in July, bringing the Manheim Used Vehicle Value Index to 158 a 12.5% increase from a year ago and another record-high for the Index, which also occurred in June, according to Cox Automotive.
Improvements in the Manheim Market Report (MMR) were seen over the four full weeks of July, resulting in a 4.9% cumulative increase on the three-year-old Index, according to Cox. On a year-over-year basis, most major market segments saw seasonally adjusted price increases in July, with luxury cars and pickup trucks outperforming the overall market.
MMR Retention, which is the average difference in price relative to current MMR, was greater than 100% for nearly every day in July and averaged 102.5% for the month, Cox announced. The MMR Retention trend reflected that vehicles were still selling above current MMR values and was a continuation of the price trends in the previous two months.
Total used-vehicle sales volume was down 4% year-over-year in July, according to the report. The July used seasonally adjusted annual rate (SAAR) is estimated at 38 million, down from 39.7 million last July but up from June’s 36 million rate.
Used-vehicle sales volume in the U.S. was down 4% in July. The July used retail SAAR estimate is 20.4 million, down from 20.8 million last year but up month-over-month from June’s 18.9 million rate.
Used vehicle prices have recovered as the supply of used vehicles has come down. Using a rolling seven-day estimate of used retail days’ supply, used retail supply peaked at 115 days on April 8, 2020, according to Cox. Normal used retail supply is about 44 days’ supply.
Meanwhile, the average price for rental risk units sold at auction in July was up 7.5% year over year. Rental risk prices were up 5% compared to June. Average mileage for rental risk units in July, at 46,600 miles, was down 5% compared to a year ago and down 7% month over month.
Consumer Confidence in July increased 5.8% and left confidence down 32% year-over-year. Plans to purchase a vehicle in the next six months declined in July and is now down year-over-year.