July drop of 1.6% indicates slowing wholesale price declines, reports Cox Automotive.
Cox Automotive's Manheim Used Vehicle Value Index rose 1.6% in December compared with November.
As the semiconductor shortage slashes vehicle production, rental car companies are taking extreme measures to bolster their fleets. The businesses are buying used vehicles at auction.
Used-vehicle value pricing continues to return to pre-hurricane levels but overall remains high, the firm reported this week.
Post-hurricane demand pushed up the firm's index 1.02% from the month prior and 8.1% from a year ago to 136.6
The Manheim Used Vehicle Value Index reached a record high in September for the fifth consecutive month, while the SAAR rose to its highest September reading in three decades. The main driver was replacement demand caused by hurricanes Harvey and Irma.
The index’s July reading shows that demand is absorbing the high supply of newer used vehicles. The good news on the new side is that inventories fell below four million and are at their lowest level of the year.
It was the second consecutive month that Manheim Used Vehicle Value Index reached a record high. Officials said strong retail demand for recent model-year used vehicles is encouraging dealers to buy more vehicles at auction, and the increased demand is more than offsetting the high supply.
With wholesale used-vehicle prices rising in May, the Manheim Used Vehicle Value Index rose to a record 127.9. The firm noted that dealers purchased the most vehicles at Manheim auctions for the month of May since 2008.
Tom Webb will retire on June 30, ending a more than four-decade career. Cox Automotive officials said a replacement will be named in the coming weeks.
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