Wholesale used-vehicle prices, on a mix-, mileage- and seasonally adjusted basis, dropped 0.59% month over month in December, according to a press release from Cox Automotive.
The decrease resulted in a 14.2% increase in the Manheim Used Vehicle Value Index, which climbed to 161.1, from a year ago.
Manheim Market Report (MMR) prices dropped every week throughout the four full weeks of December. This caused a 2.2% cumulative wholesale price decrease on the three-year-old index.
Year-year-over data showed that most major market segments had seasonally adjusted wholesale price increases in December.
“It is clear that there has been a material step change in used-vehicle values, whether you look at it from a pure price trend or we gauge used values against new,” Cox Automotive Chief Economist Jonathan Smoke said. “It will be important going forward to assess if at any point this might imply a correction could happen when the imbalance is no longer so heavily weighted toward demand."
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