Wholesale prices of used vehicles experienced their most significant drop last month since the start of the COVID-19 pandemic, signaling a potential stabilization in prices during the second half of this year.

According to Cox Automotive’s Manheim Used Vehicle Value Index, there was a 4.2% decline from May to June, reaching a value of 215.1.

This marks the index’s third consecutive monthly decrease and one of the largest monthly drops recorded. Although the index remains higher than historical levels, it has decreased by 10.3% compared to June 2022.

Chris Frey, Cox’s Senior Manager of Economic and Industry Insights, stated that buyers at auctions seemed to have taken an early summer break, CNBC reported.

However, with improvements in used retail inventory over recent weeks, the expectation is for reduced volatility in wholesale price movements for the remainder of the year.

The decline in wholesale prices is expected to have a positive impact on consumer pricing for used vehicles in the coming months, as retail prices typically follow changes in wholesale prices.

Written by staff