Wholesale used-vehicle prices fell in July compared to June, with the Manheim Used Vehicle Value Index (MUVVI) dropping 0.5% to 207.4. Despite the monthly dip, prices remain 2.9% higher year-over-year. Seasonal adjustments softened the decline, as unadjusted prices dropped 1.4% for the month. Tight inventory and steady retail demand have helped moderate depreciation compared to historical averages. Electric vehicle (EV) values continue to outpace the broader market year-over-year, though they saw sharper month-over-month declines than non-EVs.
Retail used-vehicle sales rose 1.7% in July, while new-vehicle sales increased 6.6% year-over-year, boosted by fleet demand and ongoing market volatility linked to tariff concerns. Consumer sentiment improved slightly in July, with more favorable views on vehicle prices and interest rates.
Here’s why it matters:
This data provides an important snapshot of used-vehicle market conditions for dealers navigating volatile pricing trends, inventory challenges, and shifting consumer demand. For wholesale buyers, tighter inventory and steady retail sales are slowing typical depreciation patterns, meaning pricing strategy remains critical. For retail dealers, rising EV values year-over-year could influence trade-in appraisals and sales positioning, while improved consumer sentiment may support ongoing demand despite lingering economic uncertainty. The mix of lower wholesale prices and stable retail activity suggests an opportunity for margin management, especially as new model-year vehicles enter the market and tariffs influence buyer urgency.
Key takeaways:
- Wholesale used-vehicle prices edge lower in July
The Manheim Used Vehicle Value Index dropped 0.5% from June but remains 2.9% higher than a year ago. Unadjusted values fell 1.4% month over month. - Depreciation trends slower than historical averages
The Three-Year-Old Index declined just 0.3% over four weeks, compared to a typical 0.6% drop from 2014–2019, aided by tight inventory. - EV values outperform year-over-year
Wholesale EV prices rose 8.3% from July 2024, compared to a 2.4% gain for non-EVs, though EV values fell 0.7% month over month. - Retail and new-vehicle sales remain solid
Retail used-vehicle sales increased 1.7% month over month, while new-vehicle sales rose 6.6% year-over-year, supported by strong fleet deliveries. - Consumer sentiment improves, boosting buying conditions
Indexes from The Conference Board, University of Michigan, and Morning Consult all rose in July, with buyers reporting better views on prices and interest rates.
