Manheim determined wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) increased 0.29% month-over-month in October. That movement brought the index to 140.3. However, the October reading also represented a 0.4% decrease from a year ago, and halting that 33-month streak.
“Weekly Manheim Market Report (MMR) prices continued to exhibit an accelerating depreciation pattern that began in September and peaked midway through October,” Cox Automotive analysts said in their latest index update.
They indicated 3-year-old vehicle values in aggregate were down 4% for the month, when prices normally decline by 1.5% to 2%.
“The above-average depreciation trend occurred in all major market segments,” Cox Automotive said. “As a result of this higher depreciation, prices in aggregate relative to the beginning of the year are now lower than either of the last two years.”
On a year-over-year basis, analysts noticed most major market segments saw seasonally adjusted price declines in October. Luxury cars outperformed the overall market, gaining 1.5%, while most other major segments underperformed the overall market. Compact cars paced the decreases with a drop of 6.1%, followed by vans at 5.3% and pickups at 2.4.
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