Mannheim: Wholesale prices for used vehicles are flat between June and July

Wholesale prices of used vehicles registered a marginal decline in July in the stagnant summer sales season.

Cox Automotive on Friday said wholesale prices declined just 0.1 per cent in July compared to June. The Mannheim Used Vehicle Value Index – an indicator of used-vehicle market pricing trends – declined to 219.6, down from 219.9 in June but above 195.2 in July 2021.

Ultimately, wholesale prices remain higher in 2022 than in 2021. In July they were 13 percent higher than in the year-ago period. Those numbers are adjusted by mix, mileage, and season. On a non-adjusted basis, the index fell 3.2 percent from its June level in July, with prices rising 10 percent year over year.

According to Cox Automotive, used-retail sales fell 13 percent in June to July, and sales declined 16 percent year over year. According to Cox Automotive, sales in July were down 29 percent compared to 2019 — the “worst comparison” since January to 2019.

Average wholesale prices for 3-year-old vehicles, the largest model year group at Mannheim auctions, fell 2.7 percent over the past four weeks.

Cox estimated used vehicle retail supply was at 48 days at the end of July. This is down from 52 days at the end of June, but up from 41 days in July 2021. Bulk supplies ended on 31 days in July, over 26 days in June and 22 days in July 2021.

black book index

Another indicator of wholesale pricing trends – the Black Books Used Vehicle Retention Index – also declined month-on-month.

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In July, the index fell 2.2 points from June’s level to 189.3, according to data released by Black Book on Wednesday. It was 17 per cent higher from July 2021 and 50 per cent higher than July 2020.