2023 Trending Ahead of 2022 for Late Model Used

MMR increased 2.4% over 4 weeks for 3 year old vehicles, and MMR retention topped  100% at 100.1%. As a result, after six straight months of price declines, average listing prices for used vehicles increased in February by 1% to $29.5k,  all while the average daily sales conversion rate reached 64.3%, up 9% since Jan 2019. Not too shabby, all things considered, and described as “not typical” (in a good way) by Cox

“In February, Manheim Market Report (MMR) values saw increases that were not typical…

Cox Automotive’s Manheim Used Vehicle Value Index rose 4.3% in February from January — the largest February increase since a 4.4% jump in 2009.”*

An alternative and yet complimentary gauge of the health of the wholesale market is Black Book’s Used Vehicle Retention Index, which, after seven straight down months, also jumped up 1.9 %  in February**. 

The index, which is determined by registration data that is refined to account for the mileage, age and condition of the vehicle, corroborates MMR’s findings and further supports a trend of stability.

Conversely, there is a lot of discussion in the ether these days about the bottom falling out of the used car market, and the last few years have challenged dealers with significant ups and downs that make a used market collapse seem possible. However,  for the moment, the momentum is encouraging,

To learn more about how your dealership can make the most of this momentum and leverage market trends to better manage customer expectations and experience, scan the code below for a demo of BDC United’s industry leading solutions.

*https://publish.manheim.com/en/services/consulting/used-vehicle-value-index.html

**https://www.blackbook.com/wp-content/uploads/2023/02/Jan2023Index.pdf