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Wednesday, June 07, 2023

Wholesale Used Car Prices Decreased in May; Down 7.6% Year-over-year

by Calculated Risk on 6/07/2023 10:05:00 AM

From Manheim Consulting today: Wholesale Used-Vehicle Prices See Continued Declines in May

Wholesale used-vehicle prices (on a mix, mileage, and seasonally adjusted basis) decreased 2.7% in May from April. The Manheim Used Vehicle Value Index (MUVVI) declined to 224.5, down 7.6% from a year ago.

“Price erosion continued in May, with another month-over-month drop in the index bringing it 0.3 points below our January result,” said Chris Frey, senior manager of Economic and Industry insights for Cox Automotive. “Taking a longer view, May’s year-over-year decline accelerated from April and March; however, the rate of decline might slow over the next several months as we encounter the lower prices seen at auction from May through November last year. Two consecutive reads in either measure do not a trend make, as used retail inventory is still below last year, and that tends to keep buyers at the auction, supporting prices.”
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 May (seasonally adjusted) and were down 7.6% year-over-year (YoY).