If you’re in the market for a used car, now might be the time to buy as Manheim has found wholesale used vehicle prices – on a mix, mileage, and seasonally adjusted basis – fell 4.2% in June.
This pushed the Manheim Used Vehicle Value Index (MUVVI) down to 215.1, which is 10.3% less than a year ago. That number is billed as a “measurement of wholesale used vehicle prices that is independent of underlying shifts in the characteristics of vehicles being sold.”
Cox Automotive’s Chris Frey noted, “The 4.2% drop is among the largest declines in MUVVI history and the largest decline since the start of the pandemic in April 2020 when the index plunged 11.4%.” On top of that, this is the third month in a row the MUVVI has fallen as it was 238.1 in March, before dropping to 230.8 in April and 224.5 in May.
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Unfortunately, the good news might not continue much longer as Frey suggested the market is normalizing. He added, “Buyers at auction look to have taken an early summer break, and while used retail inventory has been improving over the last several weeks, we are expecting less volatility in wholesale price movements through year-end.”
While summer is sports car season, prices for them are 14.8% less than a year ago. Compact cars tumbled 12.6%, while mid-size cars were off by 12.2%.
Cars weren’t the only body style to be hit with lower values as Manheim noted all segments were down. However, trucks only fell 6.6% compared to last year while vans were off 8.5%. Even crossovers and SUVs were down 10.5% from 2022.
H/T to CNBC
