April 11, 2022—The Manheim Market Report predicts that the second quarter may be the strongest of the year for the used vehicle market. This comes after a decline in wholesale used-vehicle values in March, as reported by a Cox Automotive press release.
"We anticipate the second quarter–and particularly April–will be the strongest part of the year for used vehicle sales and values," said Cox Automotive Chief Economist Jonathan Smoke. Smoke anticipates that after the spring season demand may wane, but the Manheim Market Report does not expect a price crash in 2022, only depreciation.
In March, Manheim reported that all major market segments saw seasonally adjusted prices that were higher, with vans having the largest year-over-year gains followed by compact cars. Manheim also cites delayed tax refunds as a contributing factor leading to used sales being down in March overall.
"Recent declines in the MUVVI are driven mostly by the seasonal adjustments. In fact, the wholesale used-vehicle market was gaining strength in the final weeks of Q1, a sign the spring bounce is finally here," said Chris Frey, senior manager of economic and industry insights at Cox Automotive. "We expect to see strengthening wholesale values in April and May, with an uptick in demand for used vehicles, driven in part by tax refunds putting more cash into the economy."
