In October, wholesale used-vehicle prices continued to fall, providing both challenges and opportunities for dealers. According to the Manheim Used Vehicle Value Index (MUVVI), wholesale prices dropped to 202.8, a 3.2% decline from last year.
When not adjusted for seasonal changes, wholesale used-vehicle prices fell 1.9% from September and were down 3.7% year over year.
According to Cox Automotive experts, this month’s price drop was partly due to business disruptions due to back-to-back hurricanes Helene and Milton earlier in the month.
All major vehicle segments saw prices go down year over year, though certain types of cars did better than others. Midsize sedans, for example, saw a slight price increase of 0.5% from last month, while SUVs and luxury cars continued to slide. Meanwhile, the demand for compact cars and pickups was lower, with pickups showing the most year-over-year depreciation at 6%.
October was a positive month for dealerships in terms of retail sales. Retail used-vehicle sales grew by 2% month over month and 11% compared to last October. The average retail listing price increased slightly by 0.3%, and inventory turnover improved. Days’ supply remained stable at 46 days, down eight days from last October.
Consumer confidence improved in October, which is good news for the market. The Conference Board Consumer Confidence Index jumped by 9.6%, and more people are considering purchasing a vehicle in the next six months – the highest level since 2019. Gas prices helped, too, averaging $3.12 per gallon in October, a 9% drop from last year.
In short, October saw lower wholesale prices and growing consumer interest, especially in retail. Dealers can expect some challenges but also solid sales opportunities in the months ahead.
