Wholesale used-vehicle prices saw a sharp increase during the first half of April. The mid-month Manheim Used Vehicle Value Index (MUVVI) rose to 207.1, a 4.3% jump from April 2024. Seasonal adjustments softened the price increase, but overall increases were above the normal trends.
Tariffs were a major contributor to the price surge, and their impact on new vehicles influenced dealers to turn to used inventory. Cox Automotive‘s Senior Director of Economic and Industry Insights, Jeremy Robb, notes that the wholesale market’s performance was weaker than usual in March. However, in the last week of the month leading into April, things “turned on a dime” once the Trump administration enforced the auto tariffs.
Manheim Market Report (MMR) prices in the Three-Year-Old Index increased by 2.5% versus the 0.2% historical average. The MMR Retention, the average difference in price compared to the current MMR, averaged 100.6%. This suggests demand was stronger than anticipated, with prices outweighing model valuations. The daily sales conversion rate hit 66.8%, 8 points above last year.
Most segments saw positive growth year-over-year during the first half of April. SUVs grew by 5.1%, the luxury segment increased by 4.7%, trucks saw modest growth at 2.3%, mid-size cars grew marginally by 0.9%, and compact vehicles declined slightly by 0.8%.
The overall industry average grew 2.2% month-over-month, with mid-size cars outperforming at 2.3%. The compact segment grew by 1.5%, SUVs by 2%, trucks by 1.9%, and the luxury segment grew marginally by 0.2% month-over-month.
The electric vehicle (EV) segment also experienced growth, with prices increasing 0.6% year-over-year and 1.2% compared to March. For the first time, the EV share of volume comprised over 3% of vehicles in the MUUVI.
Inventory levels remain below long-term seasonal norms. At the close of March, wholesale supply landed at 23 days, a three-day decrease from February. As of April 15, the wholesale supply sits at 22 days, a one-day decrease month-over-month and a two-day decline year-over-year.
According to The University of Michigan’s Consumer Sentiment Index, consumer sentiment continued to weaken this month, and the preliminary results for April hit the lowest reading since June 2022. It dipped to 50.8, a 10.9% monthly drop and a 34.2% decline compared to April 2024.
