ATLANTA and COSTA MESA, Calif. -

New information released by Cox Automotive and J.D. Power on Wednesday and Thursday provided further evidence that the wholesale market is continuing to rebound from the depths of coronavirus pandemic declines.

Both firms disseminated data collected through the midpoint of the Memorial Day holiday weekend, showing wholesale prices and supply each getting on surer footing.

Cox Automotive Jonathan Smoke noted that average wholesale prices for model year 2017 vehicles increased 1.6% year-over-over as of Sunday. Meanwhile, Smoke mentioned in his latest video update that retail prices for those specific units declined only 0.1% based on the same comparison

“So we’re seeing the big disconnect closing between retail and wholesale prices,” Smoke said during the video.

Smoke pointed out that wholesale supply and the used inventory on dealer lots are both improving, too.

Smoke recapped that Cox Automotive’s estimate of retail used-vehicle supply peaked at 115 days on April 8. He pegged normal used retail supply at about 45 days.

“It was down to 36 days during Memorial Day weekend,” Smoke said.

Meanwhile, Smoke noted that Cox Automotive’s information showed wholesale supply peaked at 149 days on April 9 when normal is just 23 days.

“It was down to 41 days on Memorial Day,” he added.

Meanwhile over at J.D. Power, vice president of data and analytics Tyson Jominy compiled the firm’s latest wholesale market update, noting that wholesale auction prices improved for the fifth consecutive week

J.D. Power determined those prices rose 2.3 percentage points for the week ending May 24. Jominy pointed out that prices have improved 11.2 percentage points during the past five weeks and are now down only 2% from the pre-virus forecast for the week ending May 24.

“This represents a substantial improvement from the 16% trough recorded the week ending April 19,” Jominy said in the update. “While the rate of improvement is expected to slow due to an anticipated rise in wholesale supply in June and July, auction prices are expected to steadily recover over the remainder of 2020, finishing the year down 2% to 5% versus 2019.

Also of note, Jominy mentioned that direct to dealer prices “continue to exhibit stability with prices essentially unchanged for the fifth consecutive week.” Since the beginning of March, prices with that specific wholesale segment are off by just 5%, according to J.D. Power data through the week ending May 24.

As far as hammers coming down at the auction, J.D. Power said wholesale auction sales surpassed 91,000 units the week ending May 24, just 11% below the pre-virus forecast for the week.

Jominy also indicated wholesale auction sales have totaled 534,000 units since mid-March, a decline of 609,000 units versus the same period in 2019 and a loss of 517,000 units compared to pre-virus expectations.

“While wholesale auction prices are rapidly approaching pre-virus exceptions, prices will likely exhibit volatility moving forward as dealers replenish retail inventory, an influx of off-lease and off-rental units enter the market and economic headwinds impact consumer demand,” Jominy said.