Cox Automotive releases mid-April wholesale used-vehicle update

Cox Automotive has released a mid-month update on wholesale used-vehicle prices, which indicates that prices dropped more in the first half of April than the entire month of March. Prices dropped one percent, bringing the Manheim Used Vehicle Value Index to 221.4. This number is still an increase of over 14% year-over-year for the first 15 days of April. 

Cox Auto reported that the daily sales conversion rate was 59.2% on April 15, an increase of 2.5% from the month of March. According to this metric, along with the Manheim Market Report’s (MMR) three-year-old MMR index and the MMR retention rate, wholesale used-vehicle prices will likely increase throughout the rest of April. 

Aside from a 0.2% decrease for pickup trucks, seasonally adjusted prices increased year-over-year across all segments. Vans and compact cars saw the most significant increases, totaling 29.8% and 20.3%, respectively. Luxury vehicle prices rose almost 19% compared to the first half of April 2021. 

Cox Auto’s update also indicated that days’ supply of used vehicles decreased by one from March, totaling 44. Wholesale supply was at an estimated 24 days on April 15, an increase of one day compared to March. Rental risk vehicle prices increased almost 19% from April of 2021, and auto loan performance improved as both delinquency and severely delinquency rates declined from March. This was reportedly due in part to individuals receiving their tax refunds.

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