Cox Automotive senior manager of economic and industry insights, Chris Frey, said that the Manheim Used Vehicle Value Index (MUVVI) fall was 4.2 per cent in June, compared with May. The index is now 215.1.

 “The year-over-year decline was also large, another 2.7 per cent drop from May’s annualised 7.6 per cent decline,” he said.

June’s decrease was a record for the month and was slightly impacted by the seasonal adjustment. The non-adjusted price change in June decreased by 3.8 per cent compared to May, moving the unadjusted average price down 10.1 per cent year over year.

Chris Frey

For the month of June, the average retail listing price for a used vehicle moved 0.5 per cent lower over the four weeks.

Mr Frey said auction prices were lower in the last half of 2022 and he said the expectations were that these increasing year-over-year moves would reduce in the months ahead as the market normalises. 

“Buyers at auction look to have taken an early (US) 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,” he said.

In the June Manheim Market Report (MMR), values showed above-average declines. In June, the average daily sales conversion rate declined to 52.2 per cent which Mr Frey said was below normal for this time of year. 

For context, the daily sales conversion rate averaged 60.7 per cent in June 2019. Conditions favoured buyers all month, but supply remained limited.

Mr Frey said that the major market segments saw seasonally adjusted prices that remained lower year over year in June.

USA: Manheim Used Vehicle Value Index – June 2023

“Compared to June 2022, pickups and vans lost less than the industry, at 6.6 per cent and 8.5 per cent respectively,” he said.

“While sports cars fared the worst at 14.8 per cent year-over-year, compact cars lost 12.6 per cent and mid-size cars were off by 12.2 per cent. 

By comparison, the US new light-vehicle sales in the US were up 19.9 per cent year-on-year, with the same number of selling days as June 2022. 

By volume, June new-vehicle sales were up 0.5 per cent month-on-month. The June sales pace, or seasonally-adjusted annual rate (SAAR), came in at 15.7 million, an increase of 20.2 per cent from last year’s 13.0 million and up 4.0 per cent from May’s revised 15.1 million pace.

Manheim’s report said that combined sales into large rental, commercial, and government fleets increased 45 per cent year-on-year again in June.

In this period, sales into rental fleets were up 85 per cent; sales into commercial fleets were up 15 per cent; and sales into government fleets were up 41 per cent.

By Neil Dowling