On the Dash:
- Manheim’s Used Vehicle Value Index fell to 207.4 in mid-August, now flat compared to a year ago.
- Compact Cars led all segments at 2.2% year-over-year growth, while SUVs and pickups lagged.
- Wholesale supply climbed to 27.7 days by Aug. 15, up 2.6 days from last year.
The Manheim Used Vehicle Value Index (MUVVI) fell to 207.4 in the first half of August, down 1.2% from July, according to Cox Automotive. The index is now essentially flat compared to August 2025, reflecting a slower pace of growth than the market saw in the first half of this year and continuing the normalizing trend Manheim reported in July.
Non-adjusted wholesale prices dropped 0.8% from July and sit 0.2% below last August. The typical August move is a 0.1% increase, so this year’s dip is a bit steeper than normal. Cox Automotive said the pullback is a normal part of the late-summer slowdown that follows a strong spring, not a sign of anything unusual in the market.
Affordability keeps compact cars and EVs on top
Compact cars stayed the strongest-performing segment, up 2.2% year over year. Luxury vehicles, which led much of the first half of 2026, slowed to a 0.7% gain. Midsize cars, SUVs, and pickups all posted softer numbers as buyers continue to gravitate toward cheaper options, even as 3-year-old vehicle prices climb.
Gas prices are a big part of that shift. The national average hit $4.06 a gallon as of Aug. 17, up from roughly $3.14 a year ago. Higher fuel costs are pushing more shoppers toward smaller, more efficient vehicles, which helps explain why Compact Cars have stayed ahead of larger segments for most of the year.
EV values cool after a strong run
Used EV values remain up 5% year over year, but that gain has slowed. The EV Index fell 4.2% from July, a steeper drop than the broader market saw. Non-EV values held closer to flat, down 1.4% year over year and 1.1% from July.
The slowdown follows a stretch of strong EV appreciation earlier in 2026. More off-lease EVs are reaching wholesale, a wave CDK projected would exceed 300,000 units this year, giving buyers more choice and easing some of the price pressure that built up over the spring.
Supply and conversion rates still trail last year
Wholesale vehicle supply reached 28.3 days at the end of July, up two days from July 2025. That figure eased to 27.7 days by Aug. 15, though it’s still 2.6 days higher than a year ago.
MMR retention averaged 99.5% in the first half of August, down slightly from a year ago but up from July. Sales conversion came in at 56.9%, down 4 points year over year despite a 3-point improvement from July, a sign dealer demand at auction still hasn’t caught back up to last year’s pace.
