The Used Market Running At Historic Levels

The used market continues running at historic levels. In November 2021, used prices increased
for a fourth consecutive month, bringing the J.D. Power Valuation Services Used Vehicle Price
Index to its highest level on record. Used prices continue to be bolstered 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, the index grew by more than nine points from October 2021 and ended
the month more than 80 points higher than where they bottomed out in December 2020. On a
year-over-year basis, used prices are nearly 39% higher than they were during the same period in
2020.

Wholesale prices at the industry level increased nearly 1.5% in November, which was not only
the best performance ever for the period, but also a significant improvement vs. the previous
five-year average decline of 3%. While wholesale prices rose again, the pace slowed from
increases in September (5%) and October (3.5%). When looking at wholesale prices on a weekly
basis in November, increases gradually slowed, but closed higher for the period than [in
October? November 2020? Not sure of the context here.]. In terms of retail prices, PIN data
shows that used prices at franchised dealers were up 1.8% in November and were nearly 23%
above prices in November 2020. Additionally, days to turn for used vehicles held steady at 40
days which, from an historical perspective, remains extremely low. In November 2020, days to
turn for used vehicles was 49 days.