On the Dash:
- Wholesale prices fell 1.4% in July, creating potential opportunities for dealers managing used-vehicle acquisition costs.
- EV values remained strong year over year, while compact cars continued to outperform SUVs and pickups.
- Rising wholesale supply and weaker sales conversion point to increased depreciation pressure heading into fall.
The Manheim Used Vehicle Value Index fell to 210 in July, as wholesale used-vehicle prices continued to normalize after peaking in the spring. According to the index, seasonally adjusted prices dropped 1.4% from June, though they still climbed 1.3% above July 2025 levels. The decline also outpaced the typical monthly gain of 0.4% that July usually brings. Non-adjusted wholesale prices fell 2.6% from June but remained 1.7% higher than a year ago.
According to Jonathan Gregory, Senior Director at Cox Automotive, wholesale values kept normalizing through July, continuing a pattern that started after the index’s March peak. The Manheim Index closed the month at 210, down 1.4% from June and about 2.5% below that March high. The index now sits about 2.5% below its March peak, with the year-over-year gain slowing to 1.3% from June’s 2.1%. “A good chunk of that is a comp effect as we lap last summer’s tariff-driven climb, but genuine seasonal depreciation is doing more of the work now that we’re fully into summer,” Gregory said in a statement.
Meanwhile, gas prices, which briefly eased in June, reversed course and rose again as July went on, Gregory said, a shift that has helped keep demand steady for used EVs even as the broader market cools. EVs held above 4% of all units in the Manheim Index for a second consecutive period, a share the market had not reached earlier this year. Still, the EV Index itself lost some momentum, falling 2.1% from June. Its year-over-year gain came in at 10.5%, down from 12% in June, while the Non-EV Index rose just 0.4% over the same year-ago period, essentially flat.
Nonetheless, Gregory said he would not call it a reversal yet, but described it as a metric Cox Automotive flagged on its second-quarter call to watch, and July marked the first month it showed up.
