Monday, 08 June 2020 22:25

Black Book and Manheim Indices for May Reflect Wholesale Stabilization

Written by Auto Remarketing staff


Both Black Book and Cox Automotive released their monthly wholesale indices for May in recent days, each remarking how some stabilization arrived in the space when compared to the COVID-19 induced turbulence seen in April.

Cox Automotive reported wholesale used-vehicle prices---on a mix-, mileage- and seasonally adjusted basis---increased 8.96% month-over-month in May, a movement that brought the Manheim Used Vehicle Value Index to 137.0, a 1.9% decrease from a year ago.


Over at Black Book, analysts said their Used Vehicle Retention Index for May came in at 106.0, marking a 0.7-point dip from April’s reading of 106.7.


Cox Automotive analysts explained Manheim Market Report (MMR) prices improved over the last four weeks, resulting in a 5.1% cumulative increase.


Analysts also noticed MMR Retention---which they explained to be the average difference in price relative to current MMR---was greater than 100% in all but three days in May and averaged 101.7% for the month.


“The MMR Retention trend reflected that vehicles were selling above current MMR values and was a clear reversal of what happened in late March and April,” Cox Automotive said in its report that accompanied the latest Manheim index update.


On a year-over-year basis, Cox Automotive determined each of the major market segments saw seasonally adjusted price declines in May. Minivans led the way with a drop of 8.3%, followed by midsize cars (down 7.4%) and compact cars (6.9%.)


Analysts said pickup prices slid 4.1% while prices for SUVs and CUVs mimicked the overall reading at 1.9%. Only luxury vehicles softened less than the overall reading as prices for those units edged down by 0.6%.


Cox Automotive also mentioned pricing for rental risk vehicles.


Analysts determined the average price for rental risk units sold at auction in May was down 5.3% year-over-year but were up 6.4% compared to April.


Cox Automotive added the average mileage for rental risk units in May (at 46,300 miles) rose 2% compared to a year ago but declined 10% month-over-month. 

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