Wholesale used vehicle prices in April continued declines observed throughout the first quarter, with retail sales taking a hit as tax season drew to a close.
Cox Automotive’s Manheim Used Vehicle Value Index (MUVVI) dropped to 198.4 last month, marking a 14% decrease from the previous year. Prices were 2.3% lower on a month-over-month basis.
Price declines were more visible in some segments than others. Luxury used vehicles showed the most resilience during the period, with only a 12.9% average price decrease. On the other hand, compact cars and electric models faced the heaviest declines, both losing around 18% of their prior-year values.
Traditional used vehicles continued to depreciate at a slower pace than electric models. Excluding battery-powered cars, the average price decline was only 13.3%.
On the retail front, vAuto data revealed a 4% decrease in retail used-vehicle sales compared to March, marking the end of tax season, although sales remained 9% higher on a year-over-year basis. The average retail listing price for used vehicles saw a 2% increase over the last four weeks, indicating resilience in dealership pricing strategies amidst market fluctuations.
While April’s new-light-vehicle sales were down 3.3% from the previous year, the seasonally adjusted annual rate (SAAR) showed a modest 0.4% increase, reaching 15.7 million. These figures underscore the industry’s ongoing adaptation to supply chain challenges and shifting consumer demands.
