US Markets
April Used Vehicle Wholesale Prices Fall Sequentially, Rise Annually, Cox Report Shows
Wholesale prices of used vehicles in the US decreased sequentially, but rose annually last month amid growing purchasing interest in electric vehicles, Cox Automotive said Thursday.The Manheim used vehicle value index reached 211.9 in April on a seasonally adjusted basis, down 1.6% from the previous month, but up 1.8% from a year earlier. Without adjustments, wholesale vehicle prices rose 0.4% sequentially and 2.8% annually, according to the automotive services and technology provider."The Manheim index fell in April and non-seasonally adjusted values weren't quite as strong as normal for this time of year," Cox Chief Economist Jeremy Robb said. "That doesn't mean prices are weak -- current values are declining at normal rates for this time of year and remain elevated against long-term averages for the end of April."Used EV prices rose 7.2% annually and 1.4% sequentially last month, while the non-EV measure increased 1.1% year over year, but was down 2.2% from March, according to the report."Affordability remains front and center, and that's driving some increased demand for older vehicles at Manheim, as well as changing the calculus for consumers shopping for EVs," Robb said. "As we get into the summer months, we will continue to see off-lease EV maturities multiply at Manheim, and that may put downward pressure on valuations."In terms of vehicle segments, EVs outperformed the overall market, while luxury vehicles continue to show "strong" performance annually, Cox said."A strong tax refund season drove consumers toward used vehicles early this year, and that kept demand and values high at Manheim through the spring market," Robb said.However, higher gas prices amid disruptions to energy supplies caused by the US-Israel war with Iran "are soaking up a lot of the extra money in consumers' pockets, and currently there's no end in sight," Robb said.US retail gasoline prices averaged $4.558 per gallon Thursday, compared with $3.154 a year ago, according to data from AAA, a travel organization that tracks fuel prices in the country.Iran is reviewing "messages" from the US via Pakistani mediators and has yet to finalize its response to a proposal by Washington to end the war, which started at the end of February, CNN reported Thursday, citing Iranian media.