According to the latest Manheim used-vehicle data, wholesale used-car prices dropped 1.3% from May to June. The supply of used cars has returned to normal levels, demand is still high, and values are falling, suggesting regular depreciation has resumed.
Cox Automotive Chief Economist Jonathan Smoke is happy to announce that the report shifts in the direction of normalcy in the used car industry, which is excellent for interested buyers. Additionally, market analysts do not see drastic enough changes in the market to suggest a recession. Instead, the job markets are stable, as well as wage increases in many industries.
As a result, the Manheim Used Vehicle Value Index increased by 9.7% to 219.9 from a year earlier. In contrast to May, the non-adjusted price change fell by 1.8 percent in June.
The decline in June increased the unadjusted average price by 10.7% over the prior year, much less than the growth rate of 23.3 % in March.
In a press release, Chris Frey, Senior Manager of Economic and Industry Insights at Cox Automotive, stated, “The market for used isn’t getting worse; we’re just in a slightly lower gear right now. And with used-vehicle values moderating and following a more normal pattern, that may even become a tailwind.”
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