Used vehicle prices continue to decline as have sales volumes. This is not unexpected as interest rates have climbed over the past number of months.

Wholesale used-vehicle prices (on a mix, mileage, and seasonally adjusted basis), decreased 3.0% in September from August 2022. The non-adjusted price change declined 2.3% year-over-year in September. September was the first month since May 2020 where wholesale values declined on a year-over-year basis.

Used vehicle retail sales declined 8% in September from August and were down 10% on a year-over-year basis. Click HERE to read the full Cox Automotive / Manheim press release.

The Manheim Used Vehicle Value Index full year forecast is expected to finish calendar year 2022 down approximately 14% on a year-over-year basis. The forecasted 14% decline is significantly greater than Manheim’s previous forecast for a 6% decline for the full year.

We at CEORater/TEK2day expect Used Vehicle sales to decline by double digit percentages in 2022 and 2023 as the Fed continues to lift its policy rate higher, thereby causing the risk-free rate and all other interest rates to climb higher for the remainder of 2022 and into 2023. View Treasury yields HERE

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