ATLANTA, GA – According to new reports, the first half of June saw prices of wholesale used vehicles decrease from the month before – and to more significant degrees than usual – potentially representing a degree of stability returning to the market after an extended period of time where prices ran rampant due to high auto loan interest rates combined with an overall lack of inventory.
Overall, wholesale used vehicle prices during the initial 15 days of June dropped 0.3 percent from May; also, the mid-month Manheim Used Vehicle Value Index lowered to 196.8, an 8.5 percent year-over-year decrease. In addition, the typical seasonal adjustments saw prices decline 1.6 percent when compared to unadjusted year-over-year prices, which were 9.5 percent lower when compared to June 2023.
Cox Automotive Senior Director of Economic and Insights, Jeremy Robb, said that prices in the used wholesale vehicle industry seem to be trending downward, which is a positive development for consumers, many of whom have been avoiding making vehicle purchases due to the high expenses in doing so in recent years.
“May ended with stronger than normal price declines in the last few weeks, and that’s continued into early June,” Robb said. “We are still seeing higher sales conversion levels with days’ supply down as sales have continued to run above last year’s levels.”
The wholesale used industry’s overall average year-over-year drop of 8.5 percent reflected even larger price declines in many specific vehicle types, with SUVs down 9.2 percent, luxury models falling 10 percent, midsize cars declining 10.1 percent, and compacts down a whopping 11.2 percent; only pickup trucks managed to outperform the overall average decline, dropping just 7.5 percent when compared to all other vehicle types.
But the biggest loser, according to reports, were electric vehicles (EVs), which saw their prices plummet in June 7.1 percent month-over-month and 17 percent year-over-year, signifying that the EV industry is having serious difficulty in appealing to consumers beyond early adopters.
Christopher Boyle is an investigative journalist, videographer, reporter and writer for SEARCHEN NETWORKS® as well as other independent news and media organizations in the United States. Christopher works on a wide variety of topics and fields, has been featured in print and online in a variety of publications, from local to national, and helps keep a keen-eye on what’s happening in the automotive world for Auto Buyers Market.