Wholesale prices fell for the second consecutive month in May and continued to fall into mid-June, as the less-than-impressive 2024 Spring/tax season market came to an early close, according to the Kontos Kommentary from ADESA Chief Economist Tom Kontos.

Nevertheless, wholesale and retail used vehicle market conditions are amenable to a less dramatic ongoing decline in prices than seen last year, as much of the correction to historical patterns of depreciation, seasonality and price-spread versus new vehicles has already taken place.

According to ADESA US Analytical Services’ monthly analysis of auction industry used vehicle prices by vehicle model class, wholesale prices in May averaged $14,329 — down 1.6% compared to April, down 11.1% relative to May 2023, and up 23.4% versus pre-pandemic/May 2019, as shown below.

The biggest month-over-month drops were in the popular compact SUV/CUV and compact car classes, perhaps indicating lessening dealer need for such units as the Spring market ends. Overall average prices have further declined in June and stood at $14,122 for the week ending June 16.