Prices at the wholesale level rose 6.3% in June

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The Manheim Used Vehicle Value Index climbed to 208.5, up 6.3% year over year and 1.6% month over month, reflecting seasonal strength despite tariff-driven volatility.
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Retail demand remains solid as off-lease supply continues to tighten, supporting higher used-vehicle values.
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The used-vehicle market is showing signs of normalization and resilience, outperforming the new-vehicle segment in terms of stability.
The wholesale used-vehicle market posted a notable uptick in June, defying the typical seasonal downtrend and signaling continued strength in a sector buoyed by resilient demand and tightening supply. That suggests prices on used car lots may continue to rise.
According to the latest data from Cox Automotive, the Manheim Used Vehicle Value Index, which tracks vehicle prices at the wholesale level, rose to 208.5, a 6.3% increase from a year ago and up 1.6% from May after seasonal adjustments.
Tariffs, which are making new cars more expensive, were likely a factor. However, despite the seasonally adjusted index showing a monthly rise, non-adjusted wholesale prices actually fell by 1.1% in June, a sharper-than-usual decline. This disconnect was largely attributed to price volatility following recent tariff announcements that disrupted new-vehicle supply chains and trickled down to affect used-vehicle dynamics.
Wholesale appreciation trends have been more volatile over Q2 as tariffs really impacted new sales and supply, said Jeremy Robb, senior director of Economic and Industry Insights at Cox Automotive. Even so, retail sales continue to run a bit hotter than prior years.
Signs of market stabilization
Industry experts see encouraging signs that the used market is returning to a more stable rhythm after years of pandemic-induced turbulence.
Historically, the used market has been incredibly consistent; but the pandemic disrupted much of that consistency, said Jonathan Smoke, chief economist at Cox Automotive. What we are seeing suggests we could finally be out of that pattern.
Improved supply bolstered by trade-ins linked to new-vehicle sales earlier this year is contributing to a more normalized market. This balance between supply and demand is expected to support continued price strength in the second half of 2025.
Elevated depreciation trends
While June saw stronger index readings overall, weekly data from the Manheim Market Report (MMR) indicated elevated depreciation, especially in the latter half of the month. MMR values fell each week, culminating in a 0.6% drop in the final week.
Over four weeks, three-year-old vehicles depreciated by 1.3%, a much steeper decline than the 0.6% historical average for the same period.
Still, the average daily sales conversion rate rose to 57.8%, up over 1 percentage point from May and well above the three-year June average of 53.1%, signaling continued retail demand.
The luxury vehicle segment once again led price appreciation, climbing 8.8% year over year, followed by SUVs at 6.0%. In contrast, compact cars declined by 0.1% the only segment to register a drop while mid-size sedans and trucks posted modest gains of 2.8%.
Retail used-vehicle sales slipped 1.5% from May but remained 2% higher than June 2024. Listing prices edged up 0.3%, and days supply remained unchanged month-over-month at 45 days still slightly tighter than last years 46-day supply.
In contrast, new-vehicle sales slumped. June saw a 14.2% drop from May and a 4.2% year-over-year decline, dragged down by cooling demand and tariff pressures. Retail new sales were estimated to be 3.0% lower than a year ago, with the fleet share dipping to 17.6%.
Posted: 2025-07-09 10:41:28