There’s a widening gap between wholesale and retail used-car prices, and it’s one that could end up helping dealers in the final months of the year.

The mid-month reading of Cox Automotive’s Manheim Used Vehicle Value Index was down 2.3% from August on an adjusted basis, and just 0.6% higher year-over-year, according to a Data Point report from the company.

Unadjusted, prices were down 1.4% from August and down 1.5% year-over-year.

“Interestingly, retail used prices have not yet started following wholesale prices down at the same accelerated rate,” said Kevin Chartier, vice president of Manheim Market Insights, in a separate video report around the new Manheim Market Insights series.

“Retail used prices have been relatively flat all year,” Chartier said. “As a result, spreads between retail and wholesale prices continue to improve, which should go a long way toward helping dealers offset potential losses associated with liquidating excess and aged inventory heading into winter.”

According to the Cox Automotive data set, average weekly list prices for retail used cars are above $28,000 in September, compared around $26,000 in September 2021 and $21,000 in September 2020.

In the pre-COVID days of September 2019, used listing prices were below $20,000.

The Cox data set also delved into inventory levels.

The charts indicate that available used retail supply is between 2.4 million and 2.6 million units, with available wholesale supply between 100,000 and 150,000 units.

Chartier said during the video that as of mid-September, there was 48 days supply of retail used vehicles, which is a “normal” level and typical for this time of year.

Meanwhile, wholesale supply has climbed modestly since the start of 2022, but remains more than 40% softer than where it was during pre-COVID September 2019, Chartier said.

“With retail used supply back in the normal range, and spreads between retail and wholesale prices expanding, we expect wholesale prices declines to begin moderating in the fourth quarter, and are likely to follow a more typical fall seasonal pattern,” he said.