US used car prices continue to decline, putting some deflation in the US pipeline.
- Prices down 2.3% m/m seasonally adjusted
- Prices down 3.1% m/m not-seasonally adjusted
- Prices down 4.0% y/y
“October revealed some not-so-spooky price moves, namely a reversal of the gains that were seen during the prior two months,” said Chris Frey, senior manager of Economic and Industry Insights for Cox Automotive. “This confirms the caution that was mentioned last month The UAW strike , avoiding one action that could have led to higher wholesale prices. October’s price decline is eerily similar to last October’s 2.2% drop, and this was not unexpected as the market remains balanced. Wholesale vehicle values typically experience some modest increases during the holiday season, and with two months remaining, we could see some upward price movements.”
Digging deeper, compact car prices are down 10.1% y/y while pickups are down just 0.5%. More at Manheim.