On the Dash:
- Wholesale used vehicle prices ended December stable, aligning closely with historical seasonal norms.
- Demand indicators remained healthy despite affordability pressures and typical year-end slowing.
- EVs and luxury vehicles continued to outperform the broader used market in 2025.
Wholesale used vehicle prices closed out December on stable ground, reflecting a market that has largely returned to typical seasonal behavior after several years of volatility, according to the Manheim Used Vehicle Value Index.
The index finished December at 205.5, posting a modest year-over-year gain and a slight increase from November. Non-seasonally adjusted prices were higher than a year earlier but declined month over month, consistent with normal year-end patterns. Historically, December price movement is flat, reinforcing the view that wholesale values have stabilized.
Cox Automotive reported that consumer spending slowed in December as affordability pressures caused buyers to pull back, allowing depreciation trends to reassert themselves in wholesale markets. Seasonal dynamics also reemerged, with used-vehicle retail sales cooling toward the end of the year, while new-vehicle sales improved from November levels but remained below the prior year.
Despite the late-year slowdown, wholesale values remained supported throughout 2025, staying above their spring low as retail demand held steady. Used vehicle sales for the year finished higher than the prior year overall, while December’s sales pace dipped slightly on a year-over-year basis but closed the year on a stable note.
Wholesale performance metrics pointed to healthy underlying demand. Prices for three-year-old vehicles declined slightly more than typical for December, aligning with long-term depreciation trends. Market prices remained closely aligned with Manheim Market Report values, and sales conversion rates remained above seasonal averages, indicating stronger-than-usual buyer activity for this time of year.
Segment performance continued to diverge across the market. Used electric vehicles outperformed the broader wholesale market in 2025, posting consistent year-over-year gains through the end of the year. Luxury vehicles and EVs led annual price increases, while compact cars and trucks recorded the steepest declines.
Nevertheless, Cox Automotive expects the used-vehicle market to cool modestly in 2026, following stronger-than-expected performance in 2025. Supply constraints are expected to persist, though improving credit conditions and seasonal tax refunds could help support demand as the new year gets underway.
