On the Dash:
- August wholesale used-vehicle prices were flat from July but rose 1.7% year-over-year, led by strong EV gains.
- Retail used-vehicle sales increased 9.2% from July, with inventory tightening to 42 days’ supply.
- Luxury and SUV segments outperformed while compact and mid-size sedans declined, and fleet sales surged 29.4% year-over-year.
Wholesale used-vehicle prices remained steady in August, with the Manheim Used Vehicle Value Index holding at 207.4, reflecting a 1.7% increase from the same month last year. Electric vehicles continued to outperform, rising 4.6% year-over-year, while non-EVs gained 1.4%.
Retail sales of used vehicles showed strong demand, increasing 9.2% from July and 9% year-over-year. Although average listing prices rose slightly by 0.3%, and days’ supply fell to 42, down from 46 in July, this indicates tightening inventory levels.
Market segment performance was mixed. Luxury and SUV vehicles outpaced the overall industry, while mid-size sedans and compact cars fell 2% and 3.5% year-over-year, respectively. Fleet sales, particularly rentals, surged 29.4% from last year, contributing to substantial overall volume. Rental risk prices increased 4.7% year-over-year, while average mileage for these vehicles declined slightly compared with August 2024.
Three-year-old vehicles saw muted depreciation trends, with MMR retention averaging 99.8%, slightly above July levels. Seasonal adjustments tempered overall price increases, but unadjusted prices rose 1.0% from July and 1.8% year-over-year.
New-vehicle sales also contributed to used-vehicle demand, rising 6.2% from last year and 5.3% from July, with a seasonally adjusted annual rate of 16.1 million. Strong fleet deliveries, especially in the rental sector, supported overall market stability.
Consumer confidence showed mixed signals in August. The Conference Board’s index fell 1.3% month-over-month but remained higher than expected, while the University of Michigan’s sentiment index dropped 5.7% to 58.2, marking a 14.3% decline year-over-year. Vehicle purchase intentions, however, improved, suggesting continued demand for both new and used vehicles.
As August data show, the used-vehicle market remains resilient, supported by limited inventory, stable wholesale pricing, and continued growth in the EV segment, even as overall consumer confidence fluctuates.
