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Wholesale prices rise again in the first half of January 2022 – Remarketing


On an annualized basis, all major market segments experienced seasonally adjusted price increases during the first 15 days of January.  Pickup trucks had the smallest increase year-on-year and trucks had the largest increase at 60.4 percent.  - Source: Cox / Manheim

On an annualized basis, all major market segments experienced seasonally adjusted price increases during the first 15 days of January. Pickup trucks had the smallest increase year-on-year and trucks had the largest increase at 60.4 percent.

Source: Cox / Manheim

Used car wholesale prices (on a combined, mileage and seasonally adjusted basis) increased 0.8 percent in the first 15 days of January compared with December 2021, according to data released today. January 19 by Cox Automotive.

This brings the Manheim Used Vehicle Value Index to 238, up 46.0% from January 2021. As has been the case for each of the past three months, most of the reported increase has been the result. of seasonal adjustment. Unadjusted prices are statistically unchanged from December.

The Manheim Market Report (MMR) prices fell in the first two weeks of January. The 3-year-old MMR index, which represents the largest cohort of five models at the auction, has lost a cumulative 1.3% over the past two weeks. During the first 15 days of January, MMR Retention, which is the average price difference from the current MMR, averaged 98%, indicating that market prices are trending down faster than other models. pricing form.

The average daily sales conversion rate of 52.5% in the first half of January was down from the December average of 52.7% but slightly above the average for the time. this year. The latest trend in major indexes suggests that wholesale used car values ​​are likely to continue to decline slightly in the second half of the month.

On an annualized basis, all major market segments experienced seasonally adjusted price increases during the first 15 days of January. Pickups posted the smallest increase year-over-year, trucks had the biggest gain at 60.4%, and both non-luxury segments outperformed the industry as a whole in terms of seasonally adjusted price increases. . Compared to December, small cars, luxury cars and pickup trucks had a slight decrease, all below 1%. In the first half of January, small cars had the largest increase.

Normalized used supplies: Using a seven-day continuous estimate of used retail day supply based on vAuto data, Cox found that a normal used retail supply of 50 days is 50 days. Wholesale supply has also improved, above the normal 22 at 25 to mid-January.

Valuing rental risk decreasing month by month: The average price for risky rental units sold at auction during the first 15 days of January was up 39% year over year. Risky rents were up 3.6% from December. Average mileage for risky rental units in the first half of January (at 60,436 miles) was up 21% from a year ago and down 11.8% from last month.

Auto loan performance continues to deteriorate: Auto loan activity deteriorated again in December. With government support dwindling and lending capacity dwindling, credit performance has normalized from past delinquencies and low defaults in earlier history during the pandemic. The number of delays over 60 days increased for the seventh consecutive month in December and increased by 4.4% year-on-year. In December, 1.45% of auto loans were past due, up from 1.36% in November and the highest level of serious delinquency since May 2020.

Compared to a year ago, the rate of serious delinquency is 5 basis points higher. In December, 5.48% of subprime loans were past due, up from 5.17% in November and the highest level of severe delinquency since February 2020. Debt delinquency ratio The severity of the subprime was 45 basis points higher than in the same period last year. Defaults fell 0.7 percent in December from November but rose 6.3 percent year-on-year. Auto credit access expanded in December. Dealertrack’s Credit Availability Index measured more liquid auto credit in December than in any month since March 2019.

Originally posted on Vehicle Remarketing

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