In the unseen lanes of the auto world, wholesale used vehicle prices wield immense power over fleet-dependent businesses. Fluctuations can dent profits, scarcity disrupts operations. With a 40% surge since pre-pandemic, challenges abound: extended vehicle service, soaring costs. We decode these trends for informed choices, turning challenges into growth opportunities. Today, we're looking at July’s wholesale vehicle index stats and what it says about used and new vehicle prices in the coming months.

Business owners that utilize fleet vehicles are impacted by wholesale prices in a couple of ways.

First, when wholesale prices are high, it means that businesses have to pay more to buy vehicles. This can increase their fleet costs, which can impact their bottom line.

Second, high wholesale prices can make it difficult for businesses to find vehicles. When there is a high demand for vehicles, but a low supply, businesses may have to wait longer to get the vehicles they need. This can disrupt their operations.

Broadly speaking, used vehicles prices have risen some 40% since pre-pandemic measurements.  That being said, prices have declined recently, but not of the scale that provides relief to businesses who have experienced a tilt in supply and demand which raised both new and used vehicle costs over the past couple of years.

As for pickup trucks and cargo vans, 2023 prices are down only slightly as compared to other vehicle types (i.e. other vehicle types are becoming more affordable.) A comparison of year-over-year wholesale prices for pickups and cargo vans, prices declined 6.6% and 9.9% respectively vs June 2022.  

What does this mean for business fleets and their near-term needs?

1. In July, the wholesale used vehicle market experienced a smaller decline in prices compared to previous months.
2. This indicates a potentially stabilizing trend in the market.  If accurate, however, that would mean that wholesale prices are stabilizing around 20% – 30% higher than pre-pandemic prices for similar vehicles.
3. The main reason for this is on account of businesses have a burning need for work vehicles and the fact that auto producers are intentionally keeping supply of stripped down work trucks low.  
4. Business fleets will continue to keep their older vehicles in service beyond their replacement cycle which will increase the difficulty of  containing operating expenses (i.e. repairs, fuel costs, downtime.)
5. Competition for new trucks and vans will likely to continue to be fierce and their prices high over the next few months at least.

In the dynamic arena of business fleets, one factor holds the reins of influence: wholesale used vehicle prices. This unseen current shapes fortunes, where scarcity disrupts and cost fluctuations challenge. But this is not a roadblock; it's a turning point. Understanding the rhythm of wholesale prices is a compass for informed choices that steer your fleet's success. Remember, fleet costs echo in safety records and profitability. With these insights, you're equipped to master inventory management, pricing strategies, and overall business planning. Have questions or need to dissect potential risks? Reach out now—no cost, no strings attached. The journey ahead is paved with potential—embrace it.