On the Dash:
- Used-vehicle prices are rising faster than seasonal norms, signaling strong dealer demand and sales conversion.
- Luxury and non-electric vehicles are driving market gains, while compact cars and trucks show weaker growth.
- Wholesale supply remains tight, and rental vehicle trends continue to support higher values.
The Manheim Used Vehicle Value Index (MUVVI) reached 212.3 in February, marking a 4% year-over-year increase in wholesale used-vehicle prices adjusted for mix, mileage, and seasonality, and a 0.8% gain month over month.
According to the report, the index reached 212.3, reflecting a 4% year-over-year increase and a 0.8% gain from January, marking a departure from the long-term February average of a 0.2% decrease. Non-adjusted wholesale prices rose 4.2% annually and 3% month over month, exceeding the historical February increase of 0.9%.
Jeremy Robb, chief economist at Cox Automotive, said the start of 2026 saw strong demand at Manheim, with higher sales conversion rates signaling dealer appetite. Winter weather slowed traffic in late January and early February, according to Cox’s Dealer Sentiment Index, but retail activity is expected to increase with warmer March temperatures and larger average tax refunds, which are running 10% higher than last year. Robb cautioned that geopolitical events in the Middle East and rising gas prices could temper short-term consumer demand.
The Manheim Market Report showed MMR prices for the Three-Year-Old Index rose 3.1% in February. Retention averaged 100.3%, up 0.3 percentage points year over year and from January. Sales conversion reached 61.5%, 0.4 points above the three-year February average and 1.4 points higher than January. Luxury vehicles and non-electric cars led year-over-year gains, while compact cars and trucks posted the weakest growth.
EV prices rose more moderately, with the EV Index up 1.8% annually and 0.8% from January, compared with a 3.7% year-over-year increase for non-EVs. Bernstein said the moderation in EV pricing reflects the expiration of government-backed incentives, though values remain above last year’s levels.
Wholesale supply fell to 26.7 days in February, slightly higher than last year but below pre-pandemic norms of 31 days. Rental vehicle prices climbed 9.1% annually and 6% from January, aided by lower average mileage.
The data points to a market where dealer demand remains robust, luxury vehicles outperform overall trends, and supply constraints continue to support strong wholesale values.
