Wholesale Used Car Prices Have Declined 15.6% Since January 2022

Wholesale prices of used vehicles have now declined 15.6% year-to-date amid decreasing retail sales, according to Cox Automotive’s Manheim Used Vehicle Value Index. The index dropped to 199.4 in November 2022, representing a 14.2% year-over-year decline, and its lowest level since August 2021. Although new retail sales have seen momentum recently, rising interest rates, improved new vehicle availability, and recessionary fears have driven down used retail car sales. Cox estimates that November 2022 used retail sales were down 10% from a year earlier, and 1% below October 2022. Dealers, however, have been somewhat reluctant to pass these decreases along to consumers thus far, with Cox reporting that the average used vehicle listing price has decreased by only 0.5% year-to-date. According to Chris Frey, a senior industry insights manager at Cox, dealers are “not wanting to sell at trough prices, that’s why we’re not seeing the prices decline so much at retail.”