Used vehicle prices in US continue to decline in May: Report

By Ovunc Kutlu

ISTANBUL (AA) - Used vehicle prices in the US continued their decline in May, according to a report by the vehicle remarketing service provider Cox Automotive.

Wholesale used vehicle prices decreased 2.7% in May, compared to the previous month, on a seasonally adjusted basis, said the report released Wednesday.

"Price erosion continued in May, with another month-over-month drop in the index bringing it 0.3 points below our January result," said Chris Frey, senior manager of economic and industry insights for Cox Automotive.

"Taking a longer view, May’s year-over-year decline accelerated from April and March; however, the rate of decline might slow over the next several months as we encounter the lower prices seen at auction from May through November last year," he added.

Cox, however, noted that two consecutive declines on both monthly and annual basis "do not a trend make," and noted that retail inventory for used cars is still below last year, which keeps buyers at auction and support prices.

On a monthly basis, prices of compact and mid-size cars declined by 2.4% each, while luxury and pickups saw their prices falling 3% and 4.3%, respectively.

Annually, prices of pickups, compact cars, and vans saw their prices losing 4.6%, 7.2%, and 7.5%, respectively, according to the report.