Used Car Prices May Be Stable as Wholesale Prices Flatten

The wholesale costs automotive sellers pay for the used vehicles they later promote stayed primarily flat in January in comparison with December.

The Manheim Used Automobile Worth Index tracks the costs sellers pay as a result of developments in wholesale pricing are likely to grow to be developments in retail pricing after a six-to-eight-week lag. The index is down 9.2% from a 12 months in the past however unchanged from a month in the past.

Kelley Blue Guide’s mum or dad firm, Cox Automotive, owns public sale firm Manheim Inc., which publishes the index.

“With the volatility we noticed final 12 months, it was a welcome signal for the trade to have a calmer month,” stated Jeremy Robb, senior director of Financial and Business Insights for Cox Automotive.

The common used automotive value rose barely in December however remained 3% decrease than a 12 months earlier than.

Kelley Blue Guide analysts count on 2024 to be a secure, predictable 12 months for automotive customers, barring any surprising disruptions to international commerce. “As we transfer into tax refund season, we count on to see a bit extra exercise within the wholesale market, and we keep that 2024 ought to present extra regular market developments by way of the 12 months,” Robb says.

The Convention Board Shopper Confidence Index elevated by 6.3% in January, powered by views of the current state of affairs leaping 9.6% and to the best degree since March 2020. Shopper confidence was up 8.3% 12 months over 12 months. Plans to buy a automobile within the subsequent six months declined to the bottom degree since April and have been down 12 months over 12 months.