Are the tides turning on US used vehicle prices?
In the wake of increased vehicle production, wholesale used vehicle prices in the United States were down in April, according to the Manheim Used Vehicle Value Index (MUVVI) reported by global automotive services and technology provider Cox Automotive.
In April, prices dropped 3% month-over-month at the US wholesale auctions of vehicle remarketing specialist Manheim. Prices have been elevated since the start of the coronavirus pandemic in 2020 which spurred lockdowns that slowed down vehicle production and resulted in supply chain issues.
Things do look like they are turning around, however. In 2020, prices rose by 7.8% on average, in 2021 (+32.9%), and in 2022 (+8.3%). Considering the first four months of 2023, prices are down approximately 7.3% compared to the same period in 2022.
In terms of price, the most recent data from Cox reported a used vehicle listed price of $26,086 in February. “We’ve experienced eight straight months of year-over-year declines, averaging 8.3%, and it’s likely not over yet,” Cox senior manager of economic and industry insights Chris Frey said in a release.
“Prices have been falling, but the tight supply might be providing some price support,” added Cox Senior Economist Charlie Chesbrough, explaining that “used prices may fall further, but it seems unlikely a massive decline will happen given the supply situation.”
Although the Manheim Index is an excellent indicator of pricing trends in the used vehicle market, it should not be considered indicative or predictive of any individual remarketer's results. Annually, it applies statistical analysis to its database of more than 5 million used vehicle transactions.
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