Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) slipped 0.1% in May, according to Manheim Consulting. This brought the Manheim Used Vehicle Value Index to a level of 119.1, which was 4.8 % lower than a year ago.

The magnitude of May’s decline was significantly smaller than any of the previous four months and reflected the ongoing re-alignment of new and used vehicle price ratios back to more normal levels, Manheim reports. Thus, the pricing impact of higher wholesale supplies in the second half of this year might be less than what many analysts previously anticipated. Manheim projects that the dominant force in future wholesale pricing will more likely be retail volumes and dealer profitability. With used vehicle financing readily available at attractive terms, retail markets will likely remain strong.

In the first half of June, wholesale prices (seasonally adjusted) made a slight uptick relative to May.

Prices for rental risk units sold at auction (unadjusted for changes in mix and mileage) were flat compared with a year ago. After adjusting for market class shifts and mileage, prices for rental risk units in May were 2.2% lower than a year ago. Average mileage was also down about 2%.

Within market classes, pickups continued to significantly outperform all other segments. Used vehicle pricing for compact and midsize cars remained, however, under the pressure of competition from the new vehicle market and increased wholesale supplies.