Major vehicle market segments were mainly higher for seasonally adjusted prices 12 months over 12 months in May, aside from the compact automotive segment, which remained unchanged.
Wholesale used-vehicle prices (on a mixture, mileage, and seasonally adjusted basis) were lower in May in comparison with April, in keeping with the Manheim Used Vehicle Value Index (MUVVI).
The index declined to 205.2, representing a 4% increase from the identical time last 12 months and a 1.4% decline from April levels. The seasonal adjustment barely lowered the month’s decline.
Nonseasonal adjusted values fell greater than usual following the strong increase in April related to the tariff announcement. The non-adjusted price in May decreased by 1.5% in comparison with April, leading to an unadjusted average price that was 4% higher 12 months over 12 months.
“Wholesale appreciation trends were remarkably strong in April, however the market gave a few of that strength back in May, although values remain well above last 12 months’s levels,” said Jeremy Robb, senior director of economic and industry insights at Cox Automotive, in a June 6 news release. “Weekly wholesale depreciation trends were stronger than usual in the course of the month but slowed down within the last week of May, with values aligning with the long-term run rates.
The used retail days’ supply stays down 5% in comparison with last 12 months’s levels, which is seasonally tighter than normal, as wholesale days’ supply at Manheim can be down 5%, Robb said. “While the market continues to digest the impact of tariffs, we could see a bit higher levels of wholesale depreciation over the summer. Nevertheless, lower inventory levels may counterbalance those more aggressive depreciation trends in the approaching months.”
Manheim Market Report Details
In May, Manheim Market Report (MMR) values experienced price declines for every week of the month, with the bottom declines occurring within the last week. In that final week, values fell by only 0.2%, barely lower than the depreciation rates mid-month. Over the previous 4 weeks, the Three-Yr-Old Index decreased by 1.4%, somewhat lower than the standard rate. Those self same weeks delivered a mean decrease of 1.5% between 2014 and 2019, indicating depreciation trends were barely lower than normally seen.
Over the month, the day by day MMR Retention, which is the common difference in price relative to the present MMR, averaged 99.1%, indicating that market prices moved below MMR values this month and were lower in comparison with April levels. Last 12 months, valuation models were down by 0.3 percentage points (30 basis points) for MMR retention, they usually are five-tenths of some extent lower than 2019 levels for a similar period. The common day by day sales conversion rate fell to 57.4%, a decline of greater than 5 percentage points from last month, even though it remains to be higher than the standard rate for this time of 12 months. For comparison, the day by day sales conversion rate averaged 55.3% in May over the previous three years.
Vehicle Market Segment Movement
Major market segments were mainly higher for seasonally adjusted prices 12 months over 12 months in May, aside from the compact automotive segment, which remained unchanged.
In comparison with May 2024, the posh segment rose essentially the most for the fourth consecutive month, increasing by 6.5%. SUVs got here in second, with a 5.2% increase during the last 12 months. Underperforming the industry, mid-size sedans increased by 1.2%, trucks rose by 0.3%, and compact cars showed the worst performance, falling by 1.5% in comparison with last 12 months.
In comparison with the previous month, the posh segment experienced the smallest decline, falling 0.7%, as SUVs decreased by 1.3%, outperforming the general market. Mid-size sedans decreased 1.6%, trucks were down 1.9%, and compact cars declined 2.3%.
Taking a look at the market by powertrain, electric vehicle (EV) values increased by 3.1% in comparison with the identical month in 2024, while non-EVs showed higher gains, rising by 3.8%. For May, EV values declined but were lower than the general market, falling by 0.9% in comparison with the prior month, while non-EVs declined by 1.8% over the identical period.
Retail Used-vehicle Sales Were Down in May
Assessing retail vehicle sales based on observed changes in units tracked by vAuto, initial estimates of retail used-vehicle sales in May were down 3% in comparison with April but up 4% 12 months over 12 months. A used vehicle’s average retail listing price decreased 0.5% during the last 4 weeks.
Using estimates of retail used days’ supply based on vAuto data, an initial assessment indicates May ended at 44 days’ supply, up at some point from 43 days at the top of April and down two days from May 2024 at 46 days.
Recent vehicle sales in May were 2.5% higher than in the identical month last 12 months, and volume increased by only 0.3% from the powerful, tariff-induced April. The May sales pace, or seasonally adjusted annual rate (SAAR), got here in at 15.6 million, down 0.2 million from last 12 months’s pace and lower than the 17.3 million in April.
Combined sales into large rental, industrial, and government fleets were unchanged, rising just 0.1% 12 months over 12 months in May. The rental fleet sales increase was offset by government and industrial weakness.
Including an estimate for fleet deliveries into dealer and manufacturer channels, the remaining recent retail sales were estimated to be up 5.5% from last 12 months, resulting in an estimated retail SAAR of 13.4 million, down from 14.7 million in April but up from 12.8 million last May. Fleet share was estimated to be 16.9%, down from last 12 months’s 19.2% share.
Rental Risk, Price and Mileage Results Were Mixed
The common price for rental risk units sold at auction in May increased by 6.7% 12 months over 12 months. Moreover, rental risk prices fell by 1.3% in comparison with April yet remain higher than some other reading since June 2023. Average mileage for rental risk units in May (at 49,500 miles) fell 9.1% for the month against last 12 months’s level, and average mileage was a bit higher against April’s levels, rising by 0.4% over the month.
Most Measures of Consumer Confidence Improved in May
The Conference Board Consumer Confidence Index increased 14.4% in May, a lot better than the expected decline and was the very best monthly improvement since March 2021. Consumers’ views of the current and the long run improved, but their views of the long run jumped 31%. Consumer confidence was down 3.3% yearly. Plans to buy a vehicle in the following six months improved to the best level since December but were still barely lower 12 months over 12 months.
The sentiment index from the University of Michigan remained unchanged in May at 52.2, which was higher than expected and marked a rise from the initial reading at the start of the month. The index was down 24% yearly and had reached its lowest since July 2022. The underlying views of current conditions declined, but future expectations improved. Expectations for inflation in a single 12 months increased to six.6% from 6.5%, but expectations for inflation in five years decreased to 4.2% from 4.4%. Consumers’ views of shopping for conditions for vehicles improved barely, as opinions of costs became less harmful, and views of rates of interest remained unchanged.
Morning Seek the advice of’s day by day consumer sentiment index increased 7.1% in May, reversing much of the decline during the last three months and leaving the index up 10.7% 12 months over 12 months.
In accordance with AAA, the national average price for unleaded gas declined 5 cents in May from the top of April to $3.14 per gallon, down 11% 12 months over 12 months but up 2.6% 12 months so far.
This Article First Appeared At www.automotive-fleet.com
