Fewer vehicles are moving through the auction lanes entering the holiday season.
Manheim’s mid-November Used Vehicle Value Index noted a downturn in wholesale inventory. As of Nov. 15, the days of supply had fallen slightly from 28 days at the end of October to 27 days.
“Wholesale used vehicle supply usually averages 30 days at this time of year. In mid-November, wholesale supply was below average, suggesting that inventory may be harder to find, especially as retail demand continues to remain elevated,” the Manheim report noted.
Manheim showed a 0.5 percent decline in wholesale prices through the first half of the month, and are down 0.2 percent from 2024.
Manheim reported that auction conversion rates were at 56.5 percent, which was above October’s numbers.
“Wholesale depreciation rates were elevated in October, burning off a bit of the higher valuation levels seen most of this year. In early November, we’ve observed more moderate trends, which was a glimmer of what we saw right at the last week of October,” said Jeremy Robb, interim Chief Economist at Cox Automotive. “So far this month, our estimates for retail sales show a slightly higher pace of sales, a great piece of information given how little economic data is out there right now. Additionally, new and used loan rates are down about 30 basis points from October levels, helping consumers.”
Robb does expect to see an active wholesale market to close the year.
“Depreciation trends are known to level out in the last month of the year, and with increased tax refunds expected in spring, the market is likely to see early demand from dealers,” Robb said.
