Used wholesale car prices declining, Cox Automotive reports

(July 10, 2024) Used vehicle wholesale prices declined on a seasonally adjusted basis in June from the previous month, according to Cox Automotive. The Manheim Used Vehicle Value Index — Cox's measurement of used-vehicle wholesale prices calculated by tracking vehicle transactions at Manheim's U.S. auctions and applying statistical analysis — fell to 196.1 in June, down 0.6 percent from May. Cox adjusts that figure for mix, mileage and seasonality. Prices were down 8.9 percent from June 2023, Cox said.

Wholesale prices declined at a stronger pace than normal for much of the last two months, said Jeremy Robb, senior director of economics and industry insights at Cox Automotive.

"However, even though much of the industry was feeling the retail sales disruptions caused by the CDK outages in the latter part of the month, Manheim started to see wholesale price declines decelerate, ending the month at a seasonally normal pace," Robb said in a statement.

On a nonadjusted basis, prices declined 2.2 percent in June from May and were down 10 percent year over year. Since September 2022, Cox has recorded 22 straight months of negative year-over-year declines in the Manheim Index.

"Our latest read, down 8.9 percent year over year, remains high, but the pace has slowed from what we've seen in the last three months," Robb said July 9 during a quarterly call about the index.

Source: Automotive News