Wholesale used-vehicle prices declined in the first half of May following strong price appreciation in April, according to new data from Cox Automotive. The Manheim Used Vehicle Value Index dropped to 205.9 mid-month, down from April after seasonal adjustments, although still 4.4% higher than May 2024. On a non-adjusted basis, prices fell 1.1% from April but remained up 4.3% year over year.
This early-May dip signals a shift back toward typical seasonal depreciation trends after April’s unusually strong performance. Cox Automotive analysts noted that used retail supply remains tight, but the pace of used sales has eased slightly and days’ supply has modestly improved, contributing to more normalized wholesale pricing expectations through the second quarter.
Within the Manheim Market Report (MMR), values for three-year-old vehicles declined 0.6% during the first half of May, which is slightly less than the historical average decline of 0.8% for this period. MMR Retention averaged 99.1%, indicating market values were marginally below model estimates. The average daily sales conversion rate reached 59.3%, up from 55.5% a year earlier but still just under May 2019 levels.
Segment performance varied. Year-over-year, luxury vehicles led the market with a 6.6% increase, followed by SUVs at 5.5%. Trucks and mid-size cars posted more modest gains of 0.5% and 2.3%, respectively. Compact cars were the only segment to decline year over year, falling 1.2%. Compared to April, however, all segments declined in value, with compact cars and trucks experiencing the sharpest drops at 1.9% and 1.7%, respectively.
Electric vehicles (EVs) followed similar trends. Prices for EVs rose 2.0% year over year, though they declined 2.0% month over month, a steeper drop than the 1.5% dip seen in non-EVs.
Wholesale supply remained steady at 24 days as of mid-May, unchanged from April and one day below May 2024 levels. This marks tighter-than-normal supply conditions for this time of year.
Consumer sentiment was mixed. The University of Michigan’s index dropped to 50.8, its lowest level in months, while Morning Consult’s daily index rose 3.9% in May, showing improving expectations. Inflation concerns ticked higher, but consumers’ perception of vehicle-buying conditions improved slightly as price views stabilized.
