It turns out that there was more than a decades-long drought for an Atlanta entity last week.
Cox Automotive, headquartered in the Georgian capital, said on Friday that its Manheim used vehicle value index saw its first-ever unadjusted increase in October last month.
The index – which began in 1997, a year after the city’s Summer Olympics and two years after its previous World Series championship – stood at 223.7 last month, an increase of 38 , 1% year on year and a record.
Wholesale prices were up 9.2% from September on a mixed, kilometer and seasonally adjusted basis, Cox Automotive said.
“Part of the monthly increase is the result of seasonal adjustment, as October typically sees above-average vehicle depreciation and therefore used price drops,” the company said in a report. “This October was the first October in the history of the Manheim Index data, which dates from 1997, to see an unadjusted price increase in October. The unadjusted price increase in October was 5.4%.
Like a baseball tipster at the All-Star break, October’s results surprised analysts at Cox Automotive.
In further context shared via email, Cox Automotive Chief Economist Jonathan Smoke said: “October’s results were surprising compared to our expectations in September. We had expected gains, but demand was much stronger throughout the month.
“October is normally a month where we see some of the less aggressive wholesale purchases by resellers, as the second-hand retail market is typically the slowest in the later months of the year,” said Smoke.
“The strongest months are always tax refund season, so late fall usually represents a lull in the market before dealers start stocking up for the spring. Usually, the new market gets all the attention of the retail industry in the fall due to the launch of new and old models at a lower price, ”he said. “This is not the case this year as production and supply chain issues have led to record stocks and positioned the used market to be even stronger.”
Like the Braves who band together at maturity, car dealerships may need to focus on trades.