Cox: Used-vehicle wholesale prices rose 2.8% in July from June

Used-vehicle wholesale prices rose on a seasonally adjusted basis in July from the previous month, according to Cox Automotive.

The Manheim Used Vehicle Value Index — Cox's measurement of used-vehicle wholesale prices calculated by tracking vehicle transactions at Manheim's U.S. auto auctions and applying statistical analysis — rose to 201.6 in July, up 2.8 percent from June. Cox adjusts that figure for mix, mileage and seasonality. Still, prices in July were down 4.8 percent from July 2023, Cox said Aug. 7.

Declines in wholesale values at Manheim auctions slowed in late June and continued through July, said Jeremy Robb, senior director of economics and industry insights at Cox Automotive.

"The sales conversion rate has been higher for each week in July, and that translated to higher prices overall at the wholesale level for the month," Robb said in a statement. "We are just beginning to see lower lease maturities for the key 3-year-old segment, and that impact will be felt over the rest of this year and into 2025 and 2026."

Cox Automotive expects to see variances from historical average depreciation rates as the supply of used vehicles in that key segment tightens, Robb said.

On a nonadjusted basis, prices increased 0.6 percent in July from June and were down 5.9 percent year over year.

Average nonadjusted wholesale prices for 3-year-old vehicles increased an aggregate of 1.1 percent over the last four weeks. Prices rose 0.5 percent in the last week of July, Cox said.

Cox also reported seasonally adjusted wholesale prices for major market segments were down year over year in July. The pace of those declines has slowed, it said.

Luxury vehicle prices were down 6.2 percent, Cox said. SUV and crossover prices were down 5.2 percent. Prices of compact vehicles were down 6.4 percent, midsize vehicles were down 6 percent and pickups were down 5.3 percent.

Seasonally adjusted wholesale values for used electric vehicles were down 11 percent year over year in July, while non-EV values were down 5 percent, Cox said.