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Friday, May 05, 2023

Wholesale Used Car Prices Decreased in April; Down 4.4% Year-over-year

by Calculated Risk on 5/05/2023 01:46:00 PM

From Manheim Consulting today: Wholesale Used-Vehicle Prices See Sizable Decline in April

Wholesale used-vehicle prices (on a mix, mileage, and seasonally adjusted basis) decreased 3.0% in April from March. The Manheim Used Vehicle Value Index (MUVVI) dropped to 230.8, down 4.4% from a year ago.

“While values increased 8.6% through the first quarter from December, the market has reversed course in April, with our monthly figures showing a month-over-month decline for the first time in 2023,” said Chris Frey, senior manager of Economic and Industry Insights for Cox Automotive. “Values in April also continue to be lower year over year. We’ve experienced eight straight months of year-over-year declines, averaging 8.3%, and it’s likely not over yet. During the financial crisis, we had 16 months of annualized declines, averaging 5.8%. Though I’m not predicting doom, we’ve surely started a second, and more rapid, decent off the pandemic peak of January 2022.”
emphasis added
Manheim Used Vehicle Value Index Click on graph for larger image.

This index from Manheim Consulting is based on all completed sales transactions at Manheim’s U.S. auctions.

The Manheim index suggests used car prices decreased in April (seasonally adjusted) and were down 4.4% year-over-year (YoY).