On the Dash:
- Retail used-vehicle supply hit 47 days in June while listing prices held flat at $27,027, up 6% year over year
- Wholesale values fell 0.6% in July after a strong spring, still up 2% year over year
- Used EVs reached a record 4% share of Manheim’s index, with the EV Index up 12.4% annually
Used-vehicle supply is loosening on both the retail and wholesale sides, and prices are pulling back from earlier gains. Cox Automotive’s June retail data shows inventory rising as sales slow, while Manheim’s mid-July wholesale index shows values easing for the first time in months.
Retail inventory and pricing
Dealers held 2.14 million used vehicles in June, up 1% from May, according to Cox Automotive’s analysis of vAuto Live Market View data. Days’ supply climbed to 47, up two days from May, while inventory has grown for several straight months.
Retail sales fell 1.6% year over year and 1.9% from May, a slowdown Cox Automotive tied to seasonality, higher prices and broader economic pressure. Average listing prices held mostly flat at $27,027, up 0.4% from May but 6% higher than a year ago. It’s the first time listing prices have topped $27,000 since the summer of 2023.
Affordability remains tight at the low end, as vehicles priced under $15,000 carried just 33 days’ supply, essentially unchanged from May and well below the market’s 47-day average. Meanwhile, credit access reached its highest level since December 2015 in June, giving buyers more financing options.
Certified Pre-owned (CPO) sales hit an estimated 210,335 units, up 5% year over year but down 7.8% from May. CPO’s share of retail sales slipped to 15.3%, from 15.7%.
Wholesale values ease
Manheim’s Used Vehicle Value Index fell to 211.5 in the first half of July, down 0.6% from June on a seasonally adjusted basis and up 2% year over year. The index had climbed as high as 213.9 in mid-June before beginning its pullback.
Sales conversion averaged 55.1% in the first half of July, down 1.7 points from June. Wholesale supply rose to 28 days as of July 15, up about 1.5 days from a year ago, as higher off-lease volume brings more inventory to market.
“Wholesale values have been on the decline in the summer after seeing a strong and prolonged Spring Bounce earlier in the year. While depreciation trends are currently running a bit higher than usual, it’s a sign of the market correcting itself back to normal as the MUVVI remains 2% higher against last year’s level,” Jeremy Robb, chief economist at Cox Automotive, said.
Robb also pointed to rising interest in used EVs, which climbed to more than 4% of all units in the Manheim Index, the highest share on record. The EV Index is up 12.4% year over year.
Retail and wholesale inventory are both loosening as sales conversion softens on both ends. Dealers should see more available inventory in the second half of the year, though affordable, lower-priced units remain scarce.
