Auto News Bulletins From Cox Auto
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Cox Automotive Chief Economist Jonathan Smoke and the Economic and Industry Insights team are currently busy with preparations for the upcoming Cox Automotive Mid-Year Review. The presentation will shed light on the auto industry’s performance in the first half of the year, and what can be expected in the remaining months. Join us on Tuesday, June 27, at 11 a.m. EDT to gain valuable insights.
In the Auto Market Report video published this morning, Smoke notes: “We needed to see consumer sentiment turn the corner to believe vehicle demand could improve.” Fortunately, the daily index of consumer sentiment from Morning Consult has increased so far in June, and the view of the future is the highest since December 2021.
Yesterday’s midmonth Manheim Used Vehicle Value Index reported that wholesale used-vehicle prices are down 3.4%. This decrease has erased almost all of the gains made in the first 12 weeks of the year and indicates a return to normal depreciation patterns. Though retail used-vehicle prices are still high, they have decreased by 0.5% over the past four weeks and are down by 2.3% compared to last year. Low inventory is part of the reason for high retail prices.
Smoke explains in today’s video: “I’m not expecting big changes in demand as rates and prices are still high. But, with prices coming down, especially what we are seeing in used, and rates stabilizing, employed consumers with strong income gains eventually find a way to buy new wheels.”
Sales in the new-vehicle market decreased toward the end of May, while inventory reached a two-year high. Listing prices dipped, but average transaction prices and sales incentives increased, according to Kelley Blue Book.
Programming note: Due to the Independence Day holiday, we will publish a special edition newsletter on Wednesday, June 28, to share content from the Mid-Year Review and will resume our regular publishing cadence on Tuesday, July 11.
We hope you find this selection of articles informative and helpful. Visit the Cox Automotive Newsroom for the latest on the industry’s most important topics. Bookmark the Auto Market Snapshot, a one-stop dashboard on the data our team is tracking. WHOLESALE USED-VEHICLE PRICES CONTINUE TO SLIDE IN FIRST HALF OF JUNE
Wholesale used-vehicle prices decreased 3.2% from May in the first 15 days of June. The midmonth Manheim Used Vehicle Value Index dropped to 217.3, which was down 9.4% from the full month of June 2022. The seasonal adjustment contributed to some of the decline. The non-adjusted price change in the first half of June declined 2.6% compared to May, while the unadjusted price was down 9.1% year over year.
Maintaining the trend that started in March, all major market segments saw seasonally adjusted prices that were lower year over year in the first half of June. Only pickups and vans, at 6.2% and 7.8%, respectively, lost less compared to the overall industry in seasonally adjusted year-over-year changes.
See the Data Point for additional details on Manheim Market Report values and market segments. Register to attend the quarterly Manheim Used Vehicle Value Index call, which will be held on Monday, July 10.
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