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Solid demand at Manheim auctions with higher sales conversion rates indicate an appetite from dealers to buy.
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Commentary/Analysis: Look for likely higher prices across the broader economy, with the auto market heading into uncharted territory — a rough road indeed.
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Analysis: Experts from Cox Automotive say in the near term, after a short surge in buying, vehicle sales will likely fall amid price increases, and OEMs may eliminate some models if tariffs persist.
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Tight supply in wholesale and retail vehicle markets will support healthy dealer demand through December.
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Commercial vehicles, electric vehicles, and late model used vehicles all show strong double-digit volume increases.
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While some weakening in the market over the Memorial Day weekend is seasonally normal, May saw more market softening in the latter half of the month.
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The latest numbers more activity in the lanes at Manheim in the second half of the month and finished the last week of February with some of the strongest weekly gains in wholesale prices for many years.
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For the full year, Cox Automotive estimates sales for used retail were down about 3%, curtailed by a constrained supply of newly used vehicles in the market.
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Manheim expects constrained growth with a volume increase of less than 1% in 2024, indicating a return to a more normal market.
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Analysts are expecting a measured movement through December and the year, which should reach the January forecast for a 4% year-over-year decline.
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