American Wholesale used car prices fall for third straight month

Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) fell in March. It was the third consecutive monthly decline, and it brought the Manheim Used Vehicle Value Index reading to 120.4, which was 4.6% lower than a year ago.

Although the availability of vehicles in the wholesale market has improved recently, so too has the level of retail demand.

As such, we would view the recent moderation in wholesale pricing as more a natural realignment with respect to new vehicle prices than a supply-driven issue.

Retail used unit sales increased nicely in the first quarter of 2013 as new vehicle sales begot used vehicle transactions and higher off-lease and off-rental volumes led to the subsequent retail sale of those units.

Read more about the March 2013 Manheim used car index.