During July, Manheim Market Report (MMR) values saw weekly increases in three of the last four weeks, “clearly higher than what is normal for weekly value changes over the month.” During the last four weeks, the Three-Year-Old Index increased an aggregate of 1.1%, including a rise of 0.5% in the last week of the month. Those same four weeks delivered an average decrease of 0.6% between 2014 and 2019, – the appreciation trend for the month of July contrasted against long-term averages.

“In late June, wholesale value declines slowed, and that trend continued throughout July as we saw values appreciate over the course of the month,” said Jeremy Robb, senior director of Economic and Industry Insights at Cox Automotive. “The sales conversion rate has been higher for each week in July, and that translated to higher prices overall at the wholesale level for the month. We are just beginning to see lower lease maturities for the key 3-year-old segment, and that impact will be felt over the rest of this year and into 2025 and 2026. As supply tightens for this key segment for the used vehicle market, we expect to see variances from historical average depreciation rates.”