Wholesale Used-Vehicle Prices Decline in Early September Amid Lower Depreciation and Improving Consumer Sentiment
Wholesale used-vehicle prices declined by 0.2% in the first half of September, with the Manheim Used Vehicle Value Index dropping to 203.6, down 5% year-over-year. Non-seasonally adjusted prices rose slightly by 0.2% from August but remained 4.6% lower than last year. Despite a typical cooling after Labor Day, depreciation trends in the wholesale market have been lower than usual. Segment-wise, pickups saw the largest year-over-year decline at 7.5%, while compact cars increased by 2.4% compared to August. Electric vehicles dropped 6.8% from 2023, though they rose 1.1% from August. Wholesale supply in mid-September rose to 26 days, and consumer sentiment improved, reaching its highest level since May. Gas prices dropped 3.8% month-to-date, with further declines anticipated.
Gas Prices Hold Steady Nationally, Temporary Increases Seen in Some Regions
Gas prices have seen a temporary increase in some U.S. regions, though the national average remains steady at $3.18 per gallon, unchanged from last week. Prices are down 13 cents from a month ago and 65 cents lower than a year ago. The rise in oil prices following a Federal Reserve interest rate cut has led to slight increases in some states, but these are expected to be short-lived, with further declines anticipated. Regions like California, Nevada, and Arizona, which missed recent drops due to refinery issues, should see relief soon. Diesel prices, however, have risen in late September. Regionally, gas prices vary, with the Gulf Coast at $2.73 per gallon and the West Coast at $4.11. Mississippi has the lowest prices at $2.71.
(CANADA) U.S. & Canada to Propose Ban on Chinese and Russian Tech in Connected Vehicles Over Cybersecurity Concerns
The U.S. Commerce Department is set to propose new rules banning Chinese and Russian hardware and software in connected vehicles, driven by concerns over cybersecurity and the potential for foreign tracking or hacking. The restrictions, stemming from a Biden administration investigation, would target technologies used in automated driving systems and vehicle communication, potentially preventing Chinese automakers from selling in the U.S. if their vehicles use this technology. While focused primarily on software, some hardware will also be affected. The initiative seeks to protect U.S. drivers' data and prevent foreign control over connected car technologies. The final rules are expected by January 2025, following a comment period, and Canada is implementing similar measures. The move also aims to give the U.S. auto industry time to build its own supply chain for connected vehicles.