According to the latest Cox Automotive Manheim Used Vehicle Value Index (MUVVI), wholesale used vehicle prices declined in February compared to January on a mix, mileage, and seasonally adjusted basis. The index fell to 204.1, remaining 0.1% higher than the previous year. Non-adjusted prices, however, increased by 1.4% from January, reflecting a seasonal lift in values.
Market fluctuations in February were driven by typical seasonal volatility and shifting tax refund-driven demand. The spring bounce in wholesale markets started slower than usual but picked up by the end of the month. In addition, retail supply remains tighter than last year, leading to stronger dealer demand at Manheim in the final week of February.
Manheim Market Report (MMR) values fluctuated throughout the month but ended on a strong note, with prices appreciating by 0.2% in the last week alone. Over four weeks, the Three-Year-Old Index rose 0.5%, outperforming the historical February average of 0.2% seen between 2014 and 2019. Daily MMR retention, which measures price movements relative to MMR values, averaged 99.0%, reflecting a closer alignment between market prices and Manheim’s benchmark.
By segment, luxury vehicles led year-over-year price gains with a 1.2% increase, followed by SUVs at 0.2%. Meanwhile, compact cars saw the steepest decline, dropping 4.8%, while mid-size sedans and trucks fell 3.5% and 0.6%, respectively. Compared to January, trucks posted the best performance with a 0.2% increase, whereas compact cars experienced the largest monthly drop, falling 1.6%.
Electric vehicle (EV) values also dipped, though less than the broader market. EV prices declined 0.2% month-over-month but were down 6.2% year-over-year. In contrast, non-EV prices fell 0.5% from January and 0.5% from February 2024.
However, retail used-vehicle sales improved in February, rising 8.0% from January and up 8.0% year-over-year, based on vAuto data. The average retail listing price declined 0.6% over the last four weeks, while retail used-vehicle supply dropped to 45 days, down from 48 days in January.
New vehicle sales were down 0.7% year-over-year but climbed 10.6% from January’s weaker performance. The seasonally adjusted annual rate (SAAR) for February reached 16.0 million, up from 15.5 million in January. Fleet sales declined 12.3% year-over-year, while retail new-vehicle sales rose 3.9%.
Further, the average auction price for rental risk units increased 1.9% year-over-year and 1.2% month-over-month. Meanwhile, the average mileage for these units rose 15.6% from last year, reaching 55,300 miles, the highest February level since 2023.
Moreover, consumer confidence fell in February, reflecting concerns about inflation and economic conditions. The Conference Board Consumer Confidence Index dropped 6.6%, while the University of Michigan’s sentiment index declined 9% to its lowest level since November 2023. Inflation expectations increased, with one-year inflation projections rising to 4.3% from 3.3%.
Despite economic uncertainties, used-vehicle demand showed resilience in February, with retail sales growth and rising dealer activity hinting at a stronger spring market.
