Used vehicle prices saw an incline during the initial half of the month of November in the wholesale market.

The Manheim Used Vehicle Value Index, a key indicator of used vehicle pricing trends, has shown a notable increase in wholesale prices for the first half of November. This index, managed by Manheim – the world's largest wholesale used vehicle marketplace and a subsidiary of Cox Automotive – adjusts values for seasonality, vehicle class, and mileage to provide an accurate reflection of market trends.

According to the latest data, wholesale used vehicle prices increased by 1.6% through the first half of November compared to October. This increase is significant, as wholesale costs typically decline slightly in November. However, the mid-month data showed "much less depreciation than usual," according to Jeremy Robb, senior director of economic and insights at Cox Automotive.

This trend is not unexpected, as Robb also reported that sales conversion has been moving higher for six weeks in a row. This rise in sales conversion is likely contributing to the strength in wholesale prices in early November.

The retail used vehicle sales have also seen an increase over the past month, further supporting the upward trend in wholesale prices. In fact, an analysis of the data published last month by Cox Automotive reported a decrease in the supply of both wholesale and retail used vehicles in October.

Jonathan Smoke, the Senior Director of Economic and Insights at Cox Automotive who reported the results of recent months, stated that dealer demand for wholesale units is expected to remain elevated in coming weeks due to the increase in retail used vehicle sales.

However, the Federal Reserve has reported that used car prices are subject to "extreme volatility." This volatility is likely due to a variety of factors, including supply chain disruptions and changes in consumer behaviour.

Despite this volatility, the Manheim index continues to serve as a reliable early indicator of what will be seen in the retail used market. As we move into the latter half of November, it will be interesting to see how these trends continue to unfold.

Used vehicle prices saw an incline during the initial half of the month of November in the wholesale market.