DETROIT – Wholesale used automobile costs posted their largest decline final month because the starting of the coronavirus pandemic, as costs are set to stabilize through the second half of this yr.

Cox Automotive reported Monday a 4.2% decline from Could to June in its Manheim Used Car Worth Index to 215.1. It marks the third consecutive month-to-month decline and one of many index’s largest month-to-month drops on document, based on Cox.

“Patrons at public sale look to have taken an early summer season break, and whereas used retail stock has been bettering over the past a number of weeks, we predict much less volatility in wholesale worth actions by year-end,” Chris Frey, Cox senior supervisor of financial and trade insights, mentioned in a launch.

The index, which tracks automobiles offered at its U.S. wholesale dealership auctions, stays elevated from historic ranges however is down 10.3% in comparison with June 2022.

The decline might assist convey used automobile pricing down for customers within the months to return, as retail costs historically observe adjustments in wholesale costs.

Used automobile costs have been elevated because the early days of the coronavirus pandemic, as the worldwide well being disaster mixed with provide chain points triggered manufacturing of latest automobiles to sporadically idle. That led to a low provide of latest automobiles and record-high costs amid resilient demand. The prices and shortage of stock led customers to the used automobile market, boosting these costs as effectively.

Cox Automotive expects wholesale used automobile costs to be down roughly 1.1% on the finish of this yr in comparison with December 2022. That is down from the corporate’s preliminary forecast of a 4.3% decline, as pricing and demand was extra resilient than anticipated to start the yr.