January 2022 Used Vehicle Guidelines

DECEMBER 2021 WHOLESALE MARKET UPDATE

USED VEHICLE PRICE INDEX

The used vehicle market remained hotter than ever in December 2021 as used prices closed the year nearly 41% higher than in 2020. Ultimately, the J.D. Power Valuation Services Used Vehicle Price Index reached 221.3, its highest level on record. Used prices during the fall months of 2021 were uncharacteristically strong, supported by new-vehicle production and inventory constraints; elevated levels of new vehicle customer-facing transaction prices; tightening levels of used supply; and increased dealer focus on used-vehicle operations. As a result of the used market’s support in December, the index grew approximately four points compared with November 2021 and closed the year nearly 85 points higher than in December 2020.

Wholesale prices at the industry level were flat in December (relative to November), which was still one of the best performances ever for the period and a significant improvement vs. the previous five-year average decline of nearly 2%. While wholesale prices were still robust in December, it was the third consecutive month of slowing used-price growth. In terms of retail prices, PIN data for used vehicles showed that used prices at franchised dealers were up 3% in December from November and were nearly 23% above prices from December 2020. Also, used days to turn was a lean 41 days in December 2021 compared with 52 days a year prior.