Used vehicle value and prices have dipped. In April, wholesale used-vehicle prices decreased 3% from March, with the Manheim Used Vehicle Value Index dropping to 230.8, down 4.4% YoY. The first month-over-month decline in 2023.
Used vs New vs Fleet. Used-vehicle retail sales declined 8% YoY, while new-light-vehicle sales increased 9% YoY. Fleet sales experienced significant growth with nine consecutive months of double-digit increases.
The Black Book's Used Vehicle Retention Index was at 175.6 in April, down 0.1 from March and 5.3% softer than April 2022. Black Book and Cox Automotive indicate eight consecutive months of YoY decline.
Does this mean new inventory returning to normal? Production of light vehicles rose 10.5% YoY in North America, with a predicted 10% increase for the year compared to 2022. US light-vehicle sales are expected to reach 14.7 million units in 2023 and 15.3 million units in 2024. Factors such as improved new inventory, OEM incentives, and affordability concerns are putting pressure on wholesale prices, which are expected to decline throughout the year.