Wholesale Used Prices Fall in May

By Staff Writer June 09, 2024

Wholesale used-vehicle prices (on a mix, mileage, and seasonally adjusted basis) were down in May compared to April. The Manheim Used Vehicle Value Index fell to 197.3, a decline of 12.1% from a year ago. The seasonal adjustment to the index reduced the impact on the month, resulting in values that declined 0.6% month over month. The non-adjusted price in May decreased by 1.2% compared to April, moving the unadjusted average price down 11.4% year over year. 

Cox Automotive"s Jeremy Robb. 

“While declines in used-vehicle values overall were a bit muted in the first half of May, they picked up in the latter half of the month,” said Jeremy Robb, senior director of Economic and Industry Insights at Cox Automotive. “It’s seasonally normal to get some weakening in the market over the Memorial Day weekend; but this month, we experienced a little more softening in the final week. As we move into summer, used retail days’ supply remains lower than last year, which could bring in more buyers at Manheim in the coming weeks.” 

In May, Manheim Market Report (MMR) values saw weekly decreases that were slightly above long-term average declines, though the first half of the month was better while the back half was weaker. Over the last four weeks, the Three-Year-Old Index decreased an aggregate of 2.0%, including a decline of 0.7% in the last week of the month, which was the week of the Memorial Day holiday. Those same five weeks delivered an average decrease of 1.5% between 2014 and 2019, illustrating that depreciation trends are currently tracking higher than long-term averages for the year. 

The average daily sales conversion rate in May dropped to 56.4%, showing that demand declined relative to April, which is seasonally normal for this time of year and includes the Memorial Day holiday week. For comparison, the daily sales conversion rate averaged 55.2% in May over the last two years. 

The major market segments all experienced seasonally adjusted prices that were down year over year in May. Compared to May 2023, pickups and luxury were the only segments that outperformed the industry, down 11.2% and 11.4%, respectively. SUVs declined by 13.2% year over year, midsize cars were down 16.3%, and compact cars were the worst-performing segment, falling by 17.4% against last year. Compared to the previous month, pickups show the best results, rising by 0.3% against April. Performing worse than the industry, SUVs fell by 1.0%, luxury was down 1.3%, midsize cars declined 1.9%, and compact cars fell the most against April, declining by 2.2% for the month. 

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Last modified on Thursday, 13 June 2024 19:28