Wholesale used-vehicle prices rose 1.7% MoM (seasonally adjusted) in the first half of June, with the Manheim Used Vehicle Value Index reaching 208.7, up 6.5% YoY.

• Non-adjusted prices fell -0.7% MoM but remained 5.6% higher YoY, showing slightly stronger-than-usual depreciation for June.
• MMR prices for 3-year-old vehicles declined -0.4%, in line with seasonal norms; MMR retention averaged 99.2%, up 0.1 ppt from late May.

• All major vehicle segments posted YoY gains, led by luxury (+8.8%), with compact cars up just 0.3%. EV prices were up 11.1% YoY while non-EV prices were up a weaker 6.2% YoY.
• MoM, trucks rose 2.1%, compact cars and SUVs increased 1.5%, and EVs climbed 0.7%, while non-EVs rose 2.0%.
• The sales conversion rate averaged 58.4%, 2 pts higher YoY, signaling healthy demand in the wholesale market.
• Cox: “While the wholesale market experienced some volatility in April and May, trends have started to calm down and are looking more normal early in June. In the first two weeks of June, we’ve seen fairly normal depreciation trends on a weekly basis, as used retail sales remain steady. With heightened activity in April and May, the seasonal adjustments to the index were a bit stronger. Now that they are starting to wane, this has caused the overall index to rise so far in June. Wholesale supply continues to be relatively tight, and we’ve seen healthy sales conversion in recent weeks, suggesting market demand will be steady as we move into summer.”