Used Vehicle Prices Decline As Rates Climb

Used Vehicle Prices Decline As Rates Climb

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

One thought on “Used Vehicle Prices Decline As Rates Climb

Comments are closed.