Lower than normal depreciation trends are driving the used wholesale vehicle industry so far this month.
Sales conversion continued to rise and held at much higher levels than prior years for the month as more buyers came to markets to replenish supply for used retail inventory.
The industry overall is seeing a strengthening trend in wholesale used vehicle market values.
A mid-month measure shows a slight increase in prices in June but continued lower price levels compared to 2023.
Sales conversion is running several points above the previous three years, including 2021, indicating that buyer demand is relatively strong despite all the uncertainty in the market.
While some weakening in the market over the Memorial Day weekend is seasonally normal, May saw more market softening in the latter half of the month.
The average daily sales conversion rate increased to 62.5%, showing that demand improved relative to February.
The latest numbers more activity in the lanes at Manheim in the second half of the month and finished the last week of February with some of the strongest weekly gains in wholesale prices for many years.
Meanwhile, used vehicle retail sales pick up in January thanks in part to vehicle prices being down 4% year-over-year, boosting affordability.
In a first-ever metric compiled by Cox Automotive, seasonally adjusted electric vehicle values ended 2023 down 17%, while non-EVs were down 7.1% for the year.
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