Used Vehicle Supply Limited at November Start
Wholesale used-vehicle prices decreased 2.3% in October from September and were down 4% from a year ago.
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.
With sales slightly stronger than expected, tight supply, and prices at about 6% below last year, these factors are expected to prevent any substantial decline in wholesale prices through year-end.
The number of used vehicles for sale had been increasing after hitting a low point in March but that increase in inventory stalled in mid-July and into August, as sales unexpectedly picked up.
IARA Summer Roundtable: From the latest vehicle market dynamics to technology influences to electric vehicle shortfalls, the International Automotive Remarketers Alliance bonded over the big issues while teeing up member and industry growth.
The conversion rate indicates that the first 15 days of August saw buyers with more bargaining power for this time of year.
While the total supply of unsold used vehicles is down from the same time a year ago, they are up from the end of June.
All major market vehicle segments saw price declines year over year and all were down compared to the previous months, except for one.
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