Wholesale used car prices continue to drop in the first half of June

In the first 15 days of June, wholesale used vehicle prices fell by 0.3% from May when adjusted for seasonality.

By the numbers: The Manheim Used Vehicle Index, which tracks prices that car dealerships pay for used cars at auctions, was down 8.5% from the full month of June in 2023.

• Over the last two weeks, prices in the Three-Year-Old Index fell by 0.9%, higher than the typical decline for this time of year.

• The average daily sales conversion rate was 57.8, which was 1.4.% more than the full month of May, but still below the June 2019 average of 60.7%.

• Manheim Market Report (MMR) Retention, which measures how closely average auction transaction prices align with MMR values, averaged 98.7%.

What it means: Rising new vehicle inventories, more factory discounts, and falling new car prices are the primary culprits for the decline in used car prices.

What’s more: Retail used-vehicle sales in May increased 15.9% A total of 1.62 million used cars were sold by both franchised and independent dealers, up 15.8% year-over-year.

• Due to this pickup in sales, days' supply of used vehicles dropped to 45 days in May, down from 48 days in April.

By segment: Compared to June 2023, pickups were the only segments that outperformed the industry, down only 7.5%.

• SUVs declined by 9.2% year over year.

• Luxury vehicles fell 10%

• Midsize cars were down 10.1%.

• Compact cars were the worst-performing segment, falling 11.2% compared to last year.

Bottom line: Car buyers will likely see retail used car prices decline…eventually. It takes some time for the wholesale price declines to trickle fully into retail markets. Of course, dealers can adjust their retail prices to compensate and safeguard their profit margins, but used car interest rates (11.6%) could keep buyers on the sidelines.

Become an automotive insider in just 5 minutes.

Get the weekly email that delivers transparent insights into the car market.

Join 64,000 others now, it's free:

Boost sales with Bumper.com's vehicle history reports, featuring NMVTIS data. Our reports can enhance trust and help you close deals faster.

As an NMVTIS-approved data provider, Bumper.com offers essential information crucial for auto dealers. Discover how our tools can help transform your business and streamline operations.

Connect with us at NIADA booth #613 or schedule a demo to learn how Bumper.com can help elevate your dealership's performance and take your sales to the next level.