Used Vehicle Prices Show Signs of Stabilization in 2023

Wholesale used vehicle prices in the U.S. increased for the first time since March, according to Cox Automotive's Manheim Used Vehicle Value Index. While prices remain elevated compared to historical levels, they are down 7.7% from August 2022. Tight inventories and expected sales levels are expected to prevent substantial pricing declines for the remainder of the year. Retail prices for consumers typically follow changes in wholesale prices. Used vehicle prices have been high due to the Covid pandemic and supply chain issues, leading to low supply of new vehicles and record-high prices. Cox Automotive predicts a slow and gradual recovery in wholesale prices to pre-pandemic levels by 2028.