Wholesale prices drop again in July – Remarketing
Wholesale used vehicle prices (on a blended, mileage and seasonally adjusted basis) fell 2.6% month over month in July, according to a Cox Automotive report released on August 6.
This brought the Manheim Used Vehicle Value Index to 195.2, an increase of 23.6% from a year ago.
Prices in the Manheim Market Report (MMR) saw weekly declines every week in July, with the price declines accelerating through the middle of the month, but then slowing the rate of decline over the past two weeks. Over the past five weeks, the three-year index has fallen sharply by 3.6%. During the month of June, MMR retention, which is the average price difference from the current MMR, averaged 98.4% and ended the month close to 100%. This means that valuation models continue to slightly overstate market prices, but the gap is narrowing. The sales conversion rate also improved as the month progressed and ended the month at a much more typical level for July.
Year over year, all major market segments recorded seasonally adjusted price increases in July. Vans, pickup trucks and sport utility vehicles posted the most significant year-over-year performance, while other car segments lagged the overall market. On a monthly basis, all major market segments recorded declines in July, with pickup trucks falling the most and sports cars the least.
Access the full wholesale price report
Originally posted on Vehicle Remarketing