The wholesale prices that car dealers pay for the used cars they later sell rose in the first two weeks of May. The increase was small – just 0.3% – but comes after steady declines through the first third of the year.
The Manheim Used Vehicle Value Index tracks the prices car dealers pay for used cars at auction. Manheim, like Kelley Blue Book, is part of Cox Automotive.
Prices remain low compared to a year ago — down 11.3% from May 2023. The small increase comes as dealers look to restock. Used car sales typically surge in spring as Americans get their tax returns.
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That surge was smaller than usual this year, but dealers still need to reload their lots now that it’s mostly over.
Changes in wholesale prices usually reach retail prices in about six to eight weeks, so the switch may show up chalked on windshields in mid-summer. Both new and used car prices ticked up slightly last month.
Pickups and luxury cars have seen their prices fall less than other segments this year. Dealers are paying about 10% less at auction for those, compared to around 16% for most affordable sedans.
