Mid-Week Automotive News Update – Prices, Sales, Auctions

WHOLESALE PRICES OF USED VEHICLES RISE IN MAY

Wholesale prices for used vehicles rose 0.7% in May from April. Manheim’s used vehicle value index rose to 222.7, up 9.7% from a year ago. The unadjusted price change rose 1.1% in May from April, leaving the unadjusted average price up 12.1% year over year.

All major market segments recorded higher seasonally adjusted prices year over year in May, with the exception of pickup trucks. Mirroring April’s numbers, minivans again posted the largest year-over-year gains, followed by compact and sports cars. Most major segments saw seasonally adjusted price increases month over month. Six of the eight major market segments saw price increases from April, with full-size and luxury cars down.

Read data point for more details on the Manheim market report values ​​and average daily sales conversion rates. Register to attend the Q2 Manheim Used Vehicle Value Index call on Friday July 8th. If you can’t attend the live webinar, be sure to register anyway, and we’ll send you the recording after the event.

BIG CONCERN: THE IMPACT OF INFLATION ON CONSUMER SENTIMENT

In his bi-weekly video, the Auto Market Report, Chief Economist Jonathan Smoke notes that Morning Consult’s Return to Normal Index and Consumer Confidence Index declined last week, very probably affected by the increase in gas prices.

“The big worry is the impact of inflation on consumer sentiment, but labor market fundamentals are so strong that we expect demand to remain fairly flat,” Smoke said.

Data from Cox Automotive shows some normalization in the automotive market, particularly in the used retail supply as well as the wholesale supply and depreciation patterns.

Read the weekly auto market summary and Watch Automotive Market Report Video for more data and information from Smoke on new and used retail sales and inventory, depreciation models and leading indicators from Cox Automotive.

FLEET SALES DROP SIGNIFICANTLY YEAR-OVER-YEAR IN MAY

Large fleet sales, not including dealer and manufacturer fleet sales, fell 8.7% month-over-month in May to 141,047. units, according to an initial estimate by Cox Automotive.

Large rental, commercial and government fleet sales combined were down 16.1% from May 2021. Government fleet sales were up 5.9% year-over-year, while fleets trading fell slightly to 0.1% year-over-year. Meanwhile, rental fleet volume remains extremely low, down more than 33% from last May.

View the data point released yesterday to see which manufacturers had the biggest sales gains and losses in fleets.

RISE IN GASOLINE PRICES PROMOTE PURCHASES FOR ELECTRIFIED VEHICLES

Gasoline prices continue to hit new all-time highs, reaching a national average of $4.92 per gallon on June 6, according to the American Automobile Association, and prompting more vehicle buyers to consider electric vehicles , hybrids and smaller, more fuel-efficient gasolines. motorized models.

According to a recent Cox Automotive analysis of buying behavior on its Kelley Blue Book and Autotrader websites:

• Purchases of electric vehicles have soared 73% since January, before gasoline prices began their ascent.
• Purchases of hybrids increased by 25% over the same period.
• Purchases of more fuel-efficient gasoline-powered models, such as small and medium cars, increased by 33% during this period.

Learn more on how May sales reports released by some automakers reflect the popularity of electrified vehicles.

MAY SALES END UNDER COX AUTOMOTIVE FORECAST

New vehicle sales in May were below Cox Automotive’s forecast. Our team expected volumes to be down around 28% year-over-year; the results indicate a decline of more than 29%. Auto sales in May have traditionally been quite strong, boosted in part by the Memorial Day long weekend. But that was not the case this year.

The terms and conditions for the purchase of new vehicles currently represent a challenge for many potential buyers. Not only are borrowing costs rising with higher interest rates, rising gas prices are also driving up vehicle operating costs. According looking for Kelley Blue Book, more and more buyers are looking for smaller, fuel-efficient and electrified vehicles, but finding them on vehicle lots is proving difficult. Inventory levels of hybrid and compact vehicles remain well below the industry average.

See Cox Automotive’s comment for the latest release of US auto sales in May.

REGISTER NOW TO PARTICIPATE IN THE MID-YEAR REVIEW

The Cox Automotive Mid-Year Review takes place Tuesday, June 28 at 11 a.m. EDT, shortly before the auto industry closes the book on a first half of ups and downs.

In this 90-minute webinar, you’ll hear how the automotive industry fared in the first half of the year and how the Cox Automotive team sees the industry moving forward.

Our experts and analysts, led by Chief Economist Jonathan Smoke, will examine our forecast for the first half of 2022 for new and used vehicle sales. We will also provide insights and data to help quantify consumer, industry and economic performance in the first half of the year.

Register to attendand if you can’t attend the live webinar, we’ll send you the recording after the event.