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The conversion rate indicates that the first 15 days of August saw buyers with more bargaining power for this time of year.
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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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Wholesale supply has increased with weaker purchase activity in early July, yet it is otherwise normal for this time of year.
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All major market vehicle segments saw seasonally adjusted prices that were lower year over year in the first half of June.
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The average price likely will stay relatively high since few new vehicles have been sold in recent years, and little leasing was done.
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Conditions have shifted to favoring buyers, but with tight supply, the market is not far from being balanced between buyers and sellers.
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Mid-Month Update: The Manheim Used Vehicle Value Index was down 7% compared to the full month of May 2022.
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The average price likely will stay relatively high since few new vehicles were sold in recent years and little leasing was done.
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Conditions have shifted to favoring buyers; but with tight supply, the market is close to a balance between buyers and sellers.
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Analysis: Consumers are repairing vehicles and holding them longer to avoid historically high used-car prices. The real question is: How long will used inventory remain tight and prices above normal?
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