The wholesale prices of used vehicles rose by 2,8% in July. This is a significant development, as it shows the industry’s ability to adapt to changing market conditions.
The Manheim Used Vehicle Value Index, or MUVVI for short, reports a significant rise in used vehicle values. This is a marked change from the previous trend and represents a growing recovery on the market.
The price increase in July defies the annual decreases
MUVVI’s latest data shows that the index rose to 201.6 in July, despite an overall decline of 4.8%.
The growth in the second-hand vehicle market is positive and indicates that it has recovered from a period when there was instability.
Jeremy Robb is Senior Director, Economic and Industry Insights, at Cox Automotive. He notes that the increase in wholesale prices is likely due to increased conversions and reduced losses of vehicle value.
Robb attributes this rebound to several factors including the lower maturity of leases and the limited supply in certain vehicle categories.
Robb said that “the wholesale value declined slowed down in late June and continued in July. This trend resulted in an appreciation for the entire month.”
The sector is resilient and has the potential to grow further.
The Manheim Market Report shows a recent series of gains in value, which is contrary to the traditional trends.
Over the past four weeks, there was a 1,1% rise in the Three-Year-Old Index. This is higher than historical averages.
Segment-specific findings reveal a wide range of price changes across vehicle types.
Although year-overyear decreases continue, their rate has been significantly reduced. Midsize and compact vehicles have seen notable gains month-overmonth.
Sales of used vehicles in retail are on the rise
In July, used vehicle sales in retail rose by 5% compared with June. However, they were down 2% on an annual basis.
Over the last month, used vehicle retail prices have decreased on average by 0.5%.
The seasonally adjusted rate for July was 15.8 millions, which is slightly more than the 15.2 million in June.
In July, fleet sales fell 14.0% on an annual basis. New retail sales, however, are expected to rise by 1.6% over the past year, with an estimated SAAR retail of 13.1 million units.
Renting risk and customer sentiment
In July, rental risks prices were mixed. Rental risk unit prices fell 0.6% on an annual basis.
The average mileage of rental units has increased by 10.3% in the last six months, compared to June 2010.
The Conference Board Consumer Confidence Index also increased by 2,6%, due to positive future expectations.
The University of Michigan reported that consumer sentiment fell 7.1% on average and 2.6% annually in June.
This substantial increase in the wholesale price of used vehicles in July indicates a market that is resilient and adaptive, despite continuing challenges.
Interplay between sector-specific and consumer trends as well as broader economic indicators offers a holistic view of today’s automotive industry, providing valuable insight for stakeholders in this fast-paced environment.
As new information becomes available, this post US wholesale used vehicle prices rose 2.8% in July.
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