Wholesale used-vehicle prices were down 8.9% in June y/y, Manheim reports

Wholesale used-vehicle prices, on a mix, mileage, and seasonally adjusted basis, were down in June compared to May. The Manheim Used Vehicle Value Index or MUVVI, fell to 196.1, a decline of 8.9% from a year ago. The seasonal adjustment to the index mitigated the impact on the month, resulting in values that declined 0.6% month over month for the second time in a row. The non-adjusted price in June decreased by 2.2% compared to May, moving the unadjusted average price down 10.0% year over year.”Wholesale value declines have been stronger than we normally see for much of the last two months,” said Jeremy Robb, senior director of Economic and Industry Insights at Cox Automotive. “However, even though much of the industry was feeling the retail sales disruptions caused by the CDK outages in the latter part of the month, Manheim started to see wholesale price declines decelerate, ending the month at a seasonally normal pace. Sales conversion is currently running several points above the previous three years, including 2021, indicating that buyer demand is relatively strong despite all the uncertainty in the market.” In June, Manheim Market Report or MMR, values saw weekly decreases above long-term average declines, with the first half of the month showing stronger depreciation while the last week slowed noticeably. Over the last four weeks, the Three-Year-Old Index decreased an aggregate of 1.5%, including a decline of only 0.2% in the last week of the month. Those same four weeks delivered an average decrease of 0.5% between 2014 and 2019, showing that depreciation trends are currently running higher than long-term averages for the year. Publicly traded companies in the used vehicle space include: CarGurus (CARG), Copart (CPRT), AutoNation (AN), CarMax (KMX), Sonic Automotive (SAH), Penske Automotive (PAG), Asbury Automotive (ABG) and Group 1 Automotive (GPI).