\u201cSmoke on Cars\u201d <\/a>report, Smoke said, \u201cThis spring likely represented the bottom for the weak used-vehicle sales trends, as affordability should improve from here, enabling incremental demand to grow.\u201d<\/p>\n\n\n\nPrices have been trending down. In the most recent Manheim Used Vehicle Index there was a sharp decrease in wholesale prices. They are down 11.1 percent from July 2022 and 1 percent from June.<\/p>\n\n\n\n
Used retail prices remain steady, according to Manheim\u2019s numbers. The average price has hovered around $27,000 since the start of May. It\u2019s down 3 percent from last year.<\/p>\n\n\n\n
\u201cRetail used prices have declined about 3 percent from their peak in April. Used-vehicle prices should see even greater declines over the next three months following large wholesale declines in May, June, and July,\u201d Smoke said in his report.<\/p>\n\n\n\n
He also pointed out while the Federal Reserve hike its target rate to 5.25 to 5.5 percent, used auto rates have been retreating.<\/p>\n\n\n\n
\u201cAffordability has already been improving in recent weeks as used-vehicle loan rates have drifted lower and used retail prices have also declined,\u201d Smoke said. \u201cThe rates consumers pay on auto loans are more closely tied to bond yields and yield spreads than the Fed Funds Rate. Back in March, during the worst of the banking crisis, average used auto loan rates went above 14 percent. Since then, used rates have trended lower and, so far in July, are under 13.6 percent, about a half point below their peak. Today\u2019s policy rate increase may not ripple through the rates consumers see.\u201d<\/p>\n\n\n\n
Smoke said the signs of a balancing market are welcomed after the past year.<\/p>\n\n\n\n
\u201cThe dramatic increase in rates over the last 16 months, along with vehicle price inflation, has effectively priced out 5 to 10 percent of consumers. We have seen the most impact on the used auto, where sales have declined for more than a year,\u201d Smoke said.<\/p>\n","protected":false},"excerpt":{"rendered":"Though the Federal Reserve announced another interest rate hike Wednesday, Cox Automotive Chief Economist Jonathan Smoke believes the…\n","protected":false},"author":1,"featured_media":3302,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"csco_singular_sidebar":"","csco_page_header_type":"","csco_appearance_grid":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[28,3],"tags":[],"class_list":{"0":"post-4065","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-independent","8":"category-industry","9":"cs-entry","10":"cs-video-wrap"},"_links":{"self":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts\/4065","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/comments?post=4065"}],"version-history":[{"count":0,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts\/4065\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/media\/3302"}],"wp:attachment":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/media?parent=4065"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/categories?post=4065"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/tags?post=4065"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}