Insights From November 2024

November brought notable developments across the global auto industry, with mixed trends in vehicle sales, pricing, and consumer sentiment. Here’s a closer look at the month’s highlights:

Wholesale Market

Wholesale used-vehicle prices experienced a slight increase, with the Manheim Used Vehicle Value Index (MUVVI) rising to 205.4, marking a 0.2% year-over-year gain. Prices depreciated less than usual for November, attributed to tight supply in both wholesale and retail markets. Non-seasonally adjusted prices fell 0.1% month-over-month and 1% year-over-year.

The Manheim Market Report revealed that most vehicle segments saw minor depreciation, except for midsize sedans, which rose 0.3% year-over-year. Luxury vehicles and SUVs performed better month-over-month, rising by 1.7% and 1.5%, respectively. Electric vehicle (EV) values reflected broader trends, gaining 0.2% from October but showing a 11.4% year-over-year drop.

Retail Market and Sales Performance

Retail used-vehicle sales rose by 5% from October and 15% year-over-year, supported by a 0.4% increase in the average retail listing price. Days’ supply for retail used vehicles tightened to 46 days, down from 55 days in November 2023. Meanwhile, new-vehicle sales grew 10.1% year-over-year, with volume up 1.3% month-over-month. However, fleet sales declined 4.6% annually, signaling a shift in demand dynamics.

Consumer Sentiment and Economic Insights

Consumer confidence improved in November, with The Conference Board Consumer Confidence Index rising by 2.8% month-over-month and 10.6% year-over-year. The University of Michigan sentiment index also showed a 17% year-over-year increase. Improved expectations for inflation and buying conditions suggest consumers remain optimistic despite economic pressures.

Sources: Cox Automotive, Business Standard, CBT News