Wholesale used vehicle prices in the U.S. fell faster than seasonal norms in September, with electric vehicles emerging as one of the few bright spots in a weakening market.
According to Cox Automotive’s latest Manheim Used Vehicle Value Index (MUVVI), wholesale prices declined 1.1 per cent from August and 0.6 per cent year over year, bringing the index to 205.9. Historically, September has recorded an average monthly increase of 0.3 per cent on a seasonally adjusted basis.
“We are in the weakest season for wholesale valuations, and as September closed, depreciation was steeper than we typically see this time of year,” said Jeremy Robb, Chief Economist at Cox Automotive, in a statement.
Robb attributed the weakness partly to rising interest rates and elevated fuel costs, particularly diesel prices, which have reached record highs. Diesel-powered vehicles account for just over three per cent of wholesale inventory, but their valuations are declining as supply increases.
Electric vehicles, meanwhile, are moving in the opposite direction. The EV index rose 4.3 per cent year over year and 0.6 per cent from August, while non-EV prices declined 1.6 per cent and 1.7 per cent, respectively.
Compact cars also demonstrated resilience, reflecting continued demand for more fuel-efficient vehicles as gasoline prices remain elevated. Midsize cars, pickups and SUVs experienced weaker pricing.
Other indicators pointed to softer wholesale conditions. Prices for three-year-old vehicles fell 1.7 per cent in September, exceeding the typical 1.5 per cent decline. Sales conversion reached 55.2 per cent, below the three-year September average.
Wholesale days’ supply stood at 28, up 2.4 days from a year earlier but still within seasonal norms.
Despite the recent weakness, Cox Automotive noted that several market indicators are moving closer to pre-pandemic levels.
