Wholesale used-vehicle prices jumped in April, fueled by stronger-than-usual seasonal demand and growing concerns over new tariffs. According to the latest Manheim Used Vehicle Value Index (MUVVI), prices rose 2.7% month-over-month and 4.9% year-over-year, pushing the index to 208.2, the highest level since October 2023.
The spike followed the early-April tariff announcement, which prompted atypical pricing behavior for the month. Historically, wholesale used-vehicle values begin to soften by mid-April, but this year, upward trends continued throughout the month. While the seasonally adjusted increase stood at 2.7%, the non-adjusted month-over-month rise was a sharper 3.3%.
Retail dynamics also reflected the pricing pressure. Used-vehicle retail sales in April dipped 1.7% from March but remained 13% higher than last year. Average listing prices rose 2% during the month. Used retail days’ supply ticked up slightly to 41 days, down five days compared to April 2024.
New-vehicle sales saw an 11.1% increase year-over-year, despite falling 8% from a particularly strong March. April’s seasonally adjusted annual rate (SAAR) reached 17.3 million, still elevated due to consumers acting ahead of potential tariff-related price hikes. Fleet deliveries rose 2.6% year-over-year, led by higher rental fleet volume. Retail SAAR was estimated at 14.7 million, a 13.7% increase over last year.
Segment performance showed luxury vehicles and SUVs leading year-over-year price growth, while compact cars underperformed once again. Electric vehicles (EVs) posted a rare year-over-year price gain, up 1.6%, while non-EVs climbed 4.7%.
In the rental segment, auction prices for risk units rose 8.1% year-over-year and 4.1% month-over-month, the largest monthly jump since early 2023. Average mileage fell 14.7% from a year ago, signaling a normalization in fleet age.
Despite the market’s strength, consumer confidence declined sharply in April, with major indexes falling to their lowest levels in years. Inflation expectations also rose, and purchase intent for vehicles hit its lowest point since late 2023, suggesting that recent sales surges may have pulled demand forward rather than indicating sustained momentum.
