Wholesale used-vehicle prices declined in May, signaling a correction following an April price spike tied to tariff announcements. According to the Manheim Used Vehicle Value Index (MUVVI), seasonally adjusted wholesale prices fell 1.4% from April, settling at 205.2, though values remained 4% higher than the same time last year. Non-adjusted prices dropped 1.5% for the month.
Manheim’s data also showed consistent weekly declines throughout May, with the sharpest drops mid-month followed by more moderate decreases in the final week. The Three-Year-Old Index fell 1.4% over four weeks, a depreciation rate slightly below the 1.5% average seen between 2014 and 2019. Market retention also dipped, as average daily MMR retention dropped to 99.1%, signaling that vehicles were selling below market valuations.
Retail used-vehicle sales were down 3% in May compared to April but still 4% higher year over year. The average listing price decreased by 0.5% over the month. Retail days’ supply rose slightly to 44 days, up from 43 in April but below the 46-day supply recorded in May 2024. Wholesale days’ supply also declined 5% year over year, indicating tighter-than-normal inventory levels.
Among vehicle segments, luxury models led annual price gains with a 6.5% increase, followed by SUVs at 5.2%. Compact cars underperformed, falling 1.5% year over year and posting the steepest month-over-month decline at 2.3%. EVs posted a 3.1% annual increase, while non-EVs rose 3.8%. Month over month, EV values declined just 0.9%, outperforming the 1.8% drop seen in non-EVs.
New-vehicle sales grew 2.5% year over year, with the May SAAR reaching 15.6 million—down from April’s 17.3 million but above last May’s level. Retail SAAR was estimated at 13.4 million. Fleet sales remained flat year over year, as gains in rental deliveries were offset by declines in government and commercial channels.
Rental risk prices rose 6.7% annually but slipped 1.3% from April. Average mileage for those units decreased 9.1% year over year, though rose slightly month over month.
Consumer confidence improved in May, with the Conference Board’s index rising 14.4%, the strongest monthly gain since March 2021. Consumer sentiment also increased, reflecting improved outlooks on economic conditions, vehicle prices, and inflation expectations.
