FEBRUARY 2022 WHOLESALE MARKET UPDATE
USED VEHICLE PRICE INDEX
Wholesale prices were down for the second consecutive month in February 2022, which brought the J.D. Power Valuation Services Used Vehicle Price Index down approximately 5 points to 210.7. February’s decline marks only the second time the index has fallen since Summer 2021. Similar to January 2022, wholesale values experienced steady weekly declines in February. Despite the small pullback, used prices remain exceptionally strong, and ended the period 53% higher than they were through the first two months of 2021.
Wholesale prices at the industry level fell by 2.6% in February, which was one of the softer performances for the period. Generally, wholesale prices in February are flat to up slightly. In February 2021 used prices increased by nearly 3.5%, and before that the market consistently experienced healthy used prices during the February period. On the retail side, Used PIN data showed used retail prices increase by approximately $100 in February, which comes after a slight $120 decline in January. In February, used retail prices nearly returned to their all-time high of approximately $30,800 experienced in December of 2021. Additionally on the retail side, the used-to-new ratio jumped up to 116.2%, its highest level since October of last year, used days to turn dropped one day down to 41 days, indicating used vehicles continue to be very important for franchised dealers and continue to sell very quickly.