Rental Risk Prices Declined in December
The average price for rental risk units sold at auction in December was down 5.3% year over year. Rental risk prices were down 3.4% compared to November. Average mileage for rental risk units in December, at 55,700 miles, was down 18.7% compared to a year ago but up 3.1% from November.
Used and Wholesale Vehicle Market Forecast and Outlook for 2023
Used-vehicle values will see above-normal depreciation for the second-straight year. After historic value increases in 2020 and 2021, followed by above-average depreciation for most of 2022, used-vehicle values are likely to see another year of above-normal depreciation, especially in the first half of 2023.
Price trends should normalize in the year's second half as constrained wholesale supply supports used values and used retail prices fall into a normal relationship with new prices. The Manheim Used Vehicle Value Index is forecast to be down 4.3% year over year in December 2023.
2023 Poised to Set EV Sales Records, Manheim Prepares for Coming Influx of EVs
It's anticipated that more than 1 million new electric vehicles will be sold in the U.S. this year, setting a record. Manheim volumes generally reflect new-vehicle sales, with a time lag of about three to four years, and the company has been preparing for increased EV sales for several years.
In 2021, Manheim invested nearly $100 million in facility, innovation and process improvements to deliver a more connected client experience. EV infrastructure and initiatives were a key piece of this investment. Efforts underway include a Manheim- and Cox Mobility-trusted battery health score poised to lead the industry in measuring battery health and safety equipment and training for 850 EV technicians.
Through the third quarter of 2022, Manheim processed 144,000 EV and hybrid units, representing around 3.0% of the volume. There are already more than 700 chargers across 67 Manheim locations that serve the roughly 16,000 EVs on auction lots on any given day.
Manheim Used Vehicle Value Index Reindexed to 1997
With the December update, the Manheim Used Vehicle Value Index was adjusted to improve accuracy and consistency across the data set. The starting point for the MUVVI was adjusted from January 1995 to January 1997. The index was then recalculated with January 1997 = 100, whereas prior reports had 1995 as the baseline of 100. All monthly and yearly percent changes are identical; only the index starting point was adjusted.
Source: Cox Automotive
Abby Andrews