In July, the Manheim index experienced an 11.6 percent decrease compared to the same month in 2022, according to Cox.
However, this July decrease was mitigated by the seasonal adjustment, as Cox noted. The nonadjusted figures for the Manheim index also showed a decline: down 3.8 percent in July compared to June, and down 10.7 percent year over year.
Over the past four weeks, the average nonadjusted wholesale prices for 3-year-old vehicles, which form the largest model year cohort at Manheim’s auctions, have seen an aggregate decline of 3.4 percent.
When it comes to supply, Cox Automotive estimated that retail used-vehicle inventory in the U.S. stood at 46 days at the end of July, down from 49 days in June, and down from 54 days in July 2022. As for wholesale used-vehicle supply, it was estimated to have been 27 days at the end of July, up from 26 days in June, and down from 30 days in July 2022.
While used-vehicle retail inventory continues to rebuild, Cox anticipates that wholesale price declines “of serious import” are unlikely to occur through December, given the summer strength of used-vehicle retail sales, as Frey highlighted.
Black Book’s own index saw a decline of 2.5 points to 171.1 in July, according to Black Book. This figure is 9.6 percent lower compared to the same time in 2022, but it reflects a 49 percent increase from March 2020, when the coronavirus pandemic began.
With the exception of the mid-size car segment, most vehicle segments experienced wholesale price declines in July at rates that exceeded the typical pace for this time of year, revealed Alex Yurchenko, Black Book’s chief data science officer.
“Remarketers were willing to lower floors, resulting in improvements in the conversion rate at auctions,” Yurchenko explained. “However, dealers did not lower used retail prices in July, despite days-to-turn metrics remaining above 50 days. We anticipate wholesale price declines to persist throughout the remainder of the year.”
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
