Wholesale used vehicle prices increased 2.5% in January compared to December, according to Manheim.
The January increase was driven in part by the seasonal adjustment. The non-adjusted price change for the month was an increase of 1.5% compared to December. Used vehicle pricing was down 11.0% year-over-year in an unadjusted basis.
The Manheim index hit the highest level since August, although the January price increases were noted not to be typical and seasonally-adjusted price declines were seen across all segments year-over-year.
Of note, the average daily sales conversion rate increased to 59.4% and was above normal for the time of year. That compares to a daily sales conversion rate of 57.7% in January of 2019. The higher conversion rate indicated that the month saw sellers with more pricing power than what is typically seen for this time of year.
Cox Automotive noted used retail prices have come down a bit to spark some demand. Dealers have loaded up on inventory over the last month to push wholesales prices higher.
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Used auto prices rise in January after dealers loaded up on inventory