Wholesale prices last month reached the highest point seen all year, according to Manheim's latest Used Vehicle Value Index.
Wholesale prices had been on the decline since April 2018, however, a strong showing in June bucked that trend and moved current wholesale price performance ahead of last year.
Wholesale used vehicle prices were up 0.53% month-over-month in June, bringing Manheim’s used vehicle value index to 134.9, representing a 4.3% increase over last year, and the highest level seen since October 2017.
“Used vehicle prices had been moving down since that April peak [in week 15 of this year], but that trend took a surprising turn in the last two weeks of June,” noted the June Manheim report. “As a result, prices remain higher now compared to where they were at the beginning of the year than any of the last three years.”
All market segments — except luxury vehicles — experienced price gains in June on a year-over-year basis, according to Manheim. Compact cars, midsize cars, and SUVs/CUVs, in particular, had the strongest performances through the month.
The average price for rental risk units sold at auction was up 7% year-over-year in June. The average mileage on these vehicles’ odometer was 42,700, which was up 5% year-over-year.
On the retail side, used vehicle sales volume was also up in June, climbing 2% ahead of the volume sold in June 2017. The current used seasonally adjusted annual rate of 39.8 million is 1% over where it was last year.