According to Cox Automotive, wholesale used-vehicle prices increased during the first half of January compared to December. The mid-month Manheim Used Vehicle Value Index (MUVVI) rose to 205.4, reflecting a 0.7% increase year-over-year. While the seasonal adjustment dampened the month’s results, prices remain higher than those recorded during the same period last year. Non-adjusted prices saw a 1% year-over-year increase and rose 0.5% compared to December.
Senior Director of Economic and Industry Insights, Jeremy Robb, notes that the values at Manheim are revealing normal trends, with healthy demand driven by tight retail supply and the rise of new-vehicle prices. The data highlighted a 0.3% month-over-month increase in the overall wholesale used-vehicle industry. The luxury segment performed the best with a 1.5% gain, followed by SUVs, which rose 0.6%. In contrast, other segments experienced depreciation: midsize cars fell 0.8%, pickups declined 1.5%, and compact cars dropped 1.7%.
Electric vehicles (EVs) continued to exhibit the highest levels of depreciation among all vehicle types, falling 4.5% year-over-year. However, the pace of depreciation slowed early in January. Compared to December, EVs saw a notable 2.7% gain, while non-EVs rose 0.3% in the same period. The improving EV values highlight segment-specific changes driving the overall market dynamics.
Wholesale supply also trended higher at the start of the year. December closed with an estimated 31 days of supply—up two days from November and consistent with year-over-year levels. By mid-January, the supply increased to 33 days, a rise of two days compared to the end of December and one day year-over-year. This aligns with seasonal patterns where days’ supply typically rises following the holiday season.
Consumer sentiment painted a mixed picture in January. The University of Michigan’s Consumer Sentiment Index fell slightly by 1.1% to 73.2, reflecting a 7.3% decline year-over-year. However, vehicle buying conditions improved to their highest level since April 2024, driven by positive views on prices and interest rates. Additionally, the Morning Consult Daily Index of Consumer Sentiment rose 0.9% by mid-January, continuing a six-month upward trend.
Despite seasonal fluctuations, the used-vehicle market began 2025 on a strong note. Key metrics, including price trends and supply levels, underscore continued resilience, supported by healthy demand and improving market conditions.
