Wholesale used-vehicle prices climb again in January

Wholesale used-vehicle prices rose for a second month in a row in January, the result of higher-than-expected demand, according to one major indicator.

Cox Automotive said Tuesday its Manheim Used Vehicle Value Index — a measurement of wholesale used-vehicle prices calculated by tracking vehicles sold at Manheim’s U.S. auctions and applying statistical analysis to those figures — rose 2.5 percent in January from December.

Wholesale prices, however, fell 13 percent at the end of January compared with the same month in 2022, according to Manheim, which adjusts its figures for mix, mileage and seasonality. On a nonadjusted basis, the Manheim index rose 1.5 percent in January from December, with prices down 11 percent year over year.

In January, Manheim Market Report values “saw price increases that were not typical,” according to a Cox Automotive statement. Those values are usually little changed in the month, the company indicated.

Average nonadjusted wholesale prices for 3-year-old vehicles, the largest model year cohort at Manheim’s auctions, rose 1.2 percent in January from December.

Cox Automotive estimated that the U.S. retail used-vehicle supply was at 44 days at the end of January, down from 56 days at the end of December and 50 days at the end of January 2022. Wholesale used-vehicle supply ended January at 26 days, down from 32 days at the end of December and 31 days at the end of January 2022.

Used-vehicle retail sales rose 16 percent in January from December. They were up 5 percent year over year, according to Cox Automotive.

Black Book index

Black Book’s Used Vehicle Retention Index, another indicator of wholesale prices, fell 1 percent in January from December.

The index decreased to 167.7 points in January, down 1.8 points from its December level, Black Book said Tuesday. The January index number is down 15 percent from January 2022 but up 30 percent from January 2021.