Market Watch

John Ellis’ Automotive Advisor Team recaps the latest market trends for us every week. Here’s what we’ve learned from the most recent data:

🕵️‍♂️ Used Car Outlook:

• Days' supply dropped in June, indicating a faster acquisition rate compared to the rate of cars being sold.
• Used-vehicle retail sales in June declined by 4.0% compared to May but showed overall improvement compared to last year.

🕵️‍♂️ Wholesale Outlook:

• The Manheim Used Vehicle Value Index (MUVVI) dropped 10.3% from a year ago.
• Prices decreased 4.2% in June from May, marking one of the largest declines in MUVVI history.
• Manheim Market Report (MMR) values experienced consistent declines, with the Three-Year-Old Index falling by 3.8% over four weeks.

🕵️‍♂️ New Car Outlook:

• Retail days' supply decreased to 45 days, while wholesale supply remained at 24 days.
• June's new light-vehicle sales increased by 19.9% YOY.
• Last month’s sales reached 15.7M (up 20.2% from last year, and 4.0% from May).
• Combined sales in rental, commercial, and government fleets surged by 45% YOY.

🕵️‍♂️ Customer Outlook:

• Consumers are prioritizing debt repayment and rebuilding savings, marking hesitation in large purchases.
• The average US monthly payment for a new car is $730. 17% of Americans are paying $1000 or more per month.
• Gas prices fell by 1% in June to $3.54/gallon, down 27% YOY.
• The Conference Board Consumer Confidence Index rose by 11.5% YOY.
• The market remains steady but sluggish. Acquisition market values are declining ~50% faster than the retail market which is good news for both dealers and buyers.