April 2024: Wholesale Used-Vehicle Prices Dip Amidst Retail Sales Fluctuations

In April 2024, wholesale prices for used vehicles dropped compared to the previous month and the same period last year. The Manheim Used Vehicle Value Index fell by 14.0% year-over-year to 198.4. Depreciation rates were higher than usual, with vehicles losing value faster than in past years. Luxury vehicles saw the smallest decline (12.9%), while compact cars had the most significant drop (17.6%) in prices compared to last year. EV values fell more sharply (17.5%) than non-EVs (13.1%) on a seasonally adjusted basis.

Retail sales of used vehicles were estimated to be 4% lower than in March but 9% higher than the same period last year. Despite fewer sales, the average listing price for used vehicles increased by 2% over the month. New car sales also declined by 3.3% compared to the previous year, with a sales rate of 15.7 million units for April. Consumer confidence decreased, showing mixed sentiment about purchasing vehicles due to rising gas prices, which reached $3.66 per gallon nationally in April, impacting the overall economic outlook.