Cox Automotive explained why its July wholesale price data makes for a challenging comparison to what analysts reported a year ago.
In its latest update, the company said wholesale used-vehicle prices (on a mix-, mileage- and seasonally adjusted basis) increased 0.01% month-over-month in July. This movement brought the Manheim Used Vehicle Value Index to 140.5, representing a 2.6% increase compared to last July.
“After seeing steady to slightly higher prices in June in weekly Manheim Market Report (MMR) prices, July prices were firm,” Cox Automotive said in its report detailing the latest index reading.
“Three-year-old vehicle values in aggregate were flat for the month, which is much stronger than a typical July when prices normally decline by about 1%,” analysts continued.
“As a result of the stable month, prices in aggregate remain slightly lower than the beginning of the year, but non-luxury prices remain higher,” they went on to say. “Last July saw price appreciation, so even with stable prices, the comparison to last year is particularly tough.”
Of the six major vehicle segments analysts track for their monthly update, two generated slightly higher price increases than the overall reading. That pair included pickups (up 3.0%) and vans (up 2.7%).
Not far off the overall price pace were the latest readings for midsize cars (up 2.2%) and luxury cars (up 2.5%). SUVs and CUVs also rose, too, climbing by 1.2%.
Compact cars were the only segment to register a downward move, but Cox Automotive pinpointed it at just 0.3%.
“On a year-over-year basis, most major market segments saw weak seasonally adjusted price gains in July. Vans and pickups outperformed the overall market, while most other major segments underperformed the overall market,” analysts said.
“Last year is a tough comparison for both prices and sales as we experienced an abnormal increase in consumer demand during the summer driven by tariff fears and rising interest rates,” they reiterated.
Cox Automotive also shared its perspective on what rental-risk pricing did in July.
Analysts reported the average price for rental risk units sold at auction in July ticked up 3% year-over-year and 1% on a sequential basis.
The report added average mileage for rental risk units in July jumped 9% compared to a year ago and up 5% month-over-month to land at 49,000 miles.