May Shows Dip in Wholesale Used Vehicle Prices

By Staff Writer May 17, 2023 528

Wholesale used-vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) decreased 2.1% from April in the first 15 days of May. The midmonth Manheim Used Vehicle Value Index dropped to 225.9, which was down 7.0% from the full month of May 2022. The seasonal adjustment contributed to the decline. The non-adjusted price change in the first half of May declined 0.9% compared to April, while the unadjusted price was down 7.5% year over year.

Over the first two weeks of May, Manheim Market Report (MMR) prices were nearly unchanged compared to the end of April. Prices in the first two weeks of May have been generally flat over the last four years, with average changes between ‑0.1% and 0.1% since 2019. Over the first 15 days of May, MMR Retention, the average difference in price relative to current MMR, averaged 99%, indicating that valuation models remain slightly ahead of market prices. The average daily sales conversion rate of 59.5% in the first half of May declined relative to April’s daily average of 60.3% and was below the May 2019 daily average of 59.9%.

All eight major market segments saw seasonally adjusted prices that were again lower year over year in the first half of May. Only pickups and compact cars, at 3.9% and 6.6%, respectively, lost less compared to the overall industry in seasonally adjusted year-over-year changes. The remaining segments lost between 7.4% and 14.3%, with sports cars losing the most. Seven of the eight major segments saw price decreases compared to April, with losses ranging from 1.7% to 7.0%, while vans were flat.

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Last modified on Tuesday, 23 May 2023 12:41