Used vehicles across the United States have risen in value once again but still remain slightly down from where they were last year.
Manheim’s Used Vehicle Value Index increased 8.6% in the first quarter, meaning it has now jumped for four consecutive months. What this meant is that wholesale used-vehicle prices rose by 1.5% in March from February but remain 2.4% lower than they were in March 2022. Indeed, seven of the eight major market segments analyzed experienced falls in prices year-over-year from last March.
For example, the value of used midsize cars fell by 1.4% while compact cars dropped by 2.2%. Meanwhile, luxury cars lost 8.0%. Interestingly, used pickup truck values rose by 0.6%.
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“For the first time in a long time, our mid-month Manheim Used Vehicle Value Index reading for the first half of March was actually way more positive than the final value,” Cox Automotive chief economist Jonathan Smoke said. “Based on full-month data and other key metrics, we definitely think conditions are weakening. March came in like a lion and went out like a lamb regarding wholesale vehicle values. After four months of seasonally adjusted gains and 11 straight weeks of price increases, March was a turning point. So, April will likely continue the downward trend we saw as March ended, and we expect to see some negative monthly moves ahead for the index.”
In terms of sales, as reported by Cox Automotive, Manheim’s analysis reveals that used retail sales increased 13% in March from February but remain 6% down from March 2022. Used retail electric vehicle sales jumped significantly last month to 42,753 units, a 32% jump year-over-year.
Total new light vehicle sales were also strong, rising 8.6% year-over-year to a seasonally adjusted annual rate of 14.8 million, a 9.3% increase from March last year. Sales into rental fleets soared by 46% year-over-year while sales into government fleets were up 39%.
