When wholesale used car prices fall, retail used car prices fall just a week or two later. Wholesale car prices have been dropping for several months, and used car prices have followed. But the drop seems to be slowing.
The Manheim Used Vehicle Value Index tracks the prices car dealers pay for used cars at auction. It declined 2.1% in October and now sits 10.6% lower than a year ago. The index is a product of Kelley Blue Book parent company Cox Automotive.
All eight major market segments saw seasonally adjusted prices that were lower year over year in October. Luxury cars saw the most significant drop, with prices 13.6% lower than a year ago. Compact cars had the smallest decline, at 6.1%, followed by vans and pickups at 6.4% and 8.4%, respectively.
Overall used car sales are slowing. Using a set of dealerships selected to represent the country, Cox Automotive estimates that used retail sales declined 9% in October from September and were down 13% year over year.
