Used Vehicle Inventory Tightens as Year Ends
While the used vehicle market is not fully back to normal, it shows signs of more stability and balance.
While the used vehicle market is not fully back to normal, it shows signs of more stability and balance.
Analysts are expecting a measured movement through December and the year, which should reach the January forecast for a 4% year-over-year decline.
A third quarter report from AutoIMS comes amid the outside pressures of inflation and the United Auto Workers strike.
The recent Fleet Forward Conference presented updates to the fleet, used vehicle, and electric vehicle supply and demand.
The latest numbers add up to a gutpunch for the resale values of used electric vehicles as the early adopter market for EVs taps out and mainstream vehicle buyers remain cautious.
Over the last two weeks, Manheim Market Report (MMR) prices declined an aggregate of 1.9%, which was more than the normal decline of 1% for the time of year.
Wholesale used-vehicle prices decreased 2.3% in October from September and were down 4% from a year ago.
October’s price decline is eerily similar to last October’s 2.2% drop, and this was not unexpected as the market remains balanced.
Almost all major market segments saw seasonally adjusted prices that were again lower year over year in the first half of October.
The overall used-vehicle inventory volume is still considered limited and has been stuck in the 2.2 million to 2.3 million range for the past four months.
September auction sales bolstered prices through the channel, but wholesale is at a crossroads, mainly from concerns about the UAW strike possibly slowing new retail sales and moving buyers into the used market.
The fourth quarter should bring stable pricing among buyers and sellers, which should reflect only modest changes between now and the end of the year.
Plug is an online used EV wholesale marketplace to facilitate the buying and selling of used EVs among dealers.
During the last two weeks, Manheim Market Report (MMR) prices declined an aggregate of 0.3%, which was less than half of the normal decline for this time of year.
Analysis: The actions of the UAW will reverberate through the larger auto business, but nowhere near what was experienced in April 2020. Sales into fleet could suffer in 4Q if a strike is wide and persists. Rental car companies may return to the used car market like they did in 2021 and 2022, driving prices higher.
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