J.D. Power: Wholesale Prices Down in May, Auction Volume Growing
May’s wholesale prices for used vehicles up to eight years in age fell 1.7% from the prior month, a level that’s typical for this time of year, the firm stated in its June Used Car and Light Truck Guidelines report.

Wholesale prices declined in May, while auction volume continues to grow.
Photo by Eric Gandarilla.
MCLEAN, Va. — Wholesale prices for used vehicles up to eight years of age fell 1.7% month over month in May, a level that’s typical for this time of year, according to J.D. Power’s June Used Car and Light Truck Guidelines.
Unlike other months where luxury vehicle values depreciate at a considerably higher rate than their mainstream counterparts, losses for both mainstream and luxury vehicles were relatively consistent.
The heaviest depreciation on the mainstream side came from large utilities, which registered a 3% decline in wholesale price. Similarly — in the luxury segment — luxury large utility prices fell by 4.9%.
In terms of auction volume, volume increased 12% month over month and 2.6% year over year.
“Year-over-year volume continues to grow with each passing month, and as a result, there should be a transition soon where there is a more overall auction volume compared to 2017,” the report noted.
The largest volume gains are coming from the SUV segments, the report stated. Compact premium SUV volume is up 74.8% and large SUV volume is up 35.8%. The gains from these segments have still not swayed the pendulum of overall market share in favor of trucks, however. As of last month, cars make up 51% of auction volume while trucks make up the remaining 49%.
Wholesale prices are expected to decline 0.2% in June, according to J.D. Power. Meanwhile, used-vehicle prices are expected to increase by 0.8% by the end of the year. Factors that could negatively affect used vehicle prices include incentives, an anticipated increase in used supply, worsening credit conditions, and rising gas prices.
Factors working in favor of higher used vehicle prices are strong labor conditions and strengthening housing prices.
More Auto Finance

July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Auto Refi Savings Surge
Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.
Read More →
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →