MMR is intentionally designed not to over-react to short-term market ups and downs, which gives it a high degree of stability while remaining extremely accurate in typical markets. During turbulent markets like today, with rapidly and significantly dropping values, MMR may differ substantially from current transaction prices. Unlike most other guides, Manheim does not use humans to “adjust” MMR values to “predict” where the market is going.
MMR Retention, displayed in this chart, measures this difference and can help Manheim’s wholesale industry partners quantify rapid, one-directional changes to vehicle values.
Specifically, each day’s MMR Retention equals average auction sale prices divided by average MMR across Manheim’s entire marketplace.
When MMR Retention is below 100%, that means vehicles are currently transacting at less than MMR. Conversely, when MMR Retention is above 100%, vehicles are currently transacting at more than MMR.
For example, if MMR for a given vehicle type is $10,000 and today’s MMR Retention is 95%, then that vehicle type’s current transaction price at Manheim is approximately $9,500.