Wholesale used-vehicle prices declined in the first half of February, with the Manheim Used Vehicle Value Index falling to 203.3—down 0.2% from the full month of February 2024. While non-adjusted prices rose 1.0% from January, seasonal adjustments resulted in an overall price decline. The appreciation seen so far this month is weaker than the typical February increase of nearly one percentage point.
According to Cox Automotive’s Manheim Market Report (MMR), prices for three-year-old vehicles rose just 0.1% over the last two weeks, a smaller increase than in previous years. MMR retention averaged 100.1%, indicating valuations align with market prices, slightly improving over last year. The average daily sales conversion rate was 59.8%, nearly two points higher than last year and more than six points above pre-pandemic 2019 levels.
Among major vehicle segments, luxury models performed best with a 0.4% year-over-year increase, while SUVs declined in line with the industry at 0.2%. Pickup trucks fell 1.0%, midsize cars dropped 3.1%, and compact cars saw the steepest decline at 4.7%. Compared to January, all segments saw price drops, with compact cars (-1.5%) and luxury vehicles (-1.3%) depreciating the most.
Electric vehicles (EVs) continued to experience the highest depreciation, dropping 6.4% year over year and 0.4% from January, while non-EVs declined 0.9% in both comparisons.
Wholesale supply remained steady at 27 days as of mid-February, unchanged from January and in line with last year’s levels. However, supply is still running tighter than long-term averages for this time of year.
Consumer sentiment weakened in February, with the University of Michigan index falling 4.6% to 67.8, down 11.8% from last year. Inflation expectations for the next year rose to 4.3% from 3.3%, while five-year expectations increased slightly to 3.3%. Vehicle buying conditions worsened due to deteriorating price perceptions, though views on interest rates improved. Meanwhile, gasoline prices climbed 1.9% in February to $3.16 per gallon but remain 4% lower year over year.
