Wholesale used-vehicle prices rose in the first half of June, with the Manheim Used Vehicle Value Index increasing 1.7% to 208.7. The index is now up 6.5% year-over-year for the full month of June. The increase was driven in part by weaker seasonal adjustments following stronger corrections in April and May.
Despite the seasonally adjusted increase, non-adjusted prices declined by 0.7% compared to May. Year-over-year, however, non-adjusted prices remain 5.6% higher. Typically, the average non-adjusted price movement for June is a 0.5% decline, indicating that depreciation this month is slightly stronger than seasonal norms.
Retail used-vehicle sales remain steady and wholesale supply continues to run tight. As of June 15, wholesale supply stood at 25 days, unchanged from the end of May and two days lower than the same period last year. Sales conversion rates averaged 58.4% in the first half of the month, up 2 points from June 2024, reflecting solid buyer demand.
Market pricing trends show relative stability. Over the first 15 days of June, the Manheim Market Report for 3-year-old vehicles decreased 0.4%, aligning with long-term seasonal trends. MMR retention averaged 99.2%, up slightly from late May, indicating vehicles are selling just below current valuation models.
All major vehicle segments posted year-over-year gains in seasonally adjusted prices. The luxury segment led with an 8.8% increase, followed by SUVs at 6.4%, trucks at 3.9%, mid-size cars at 3.3%, and compact cars at 0.3%. Compared to May, industrywide prices rose 1.7%, with trucks outperforming at 2.1%. Compact cars and SUVs each increased by 1.5%, while mid-size cars rose by 1.3%. The luxury segment posted the smallest monthly gain at 1.2%.
Electric vehicle prices were up 11.1% in early June compared to the same time last year and rose 0.7% from May. Non-EV prices increased 6.2% year-over-year and climbed 2% month-over-month.
Consumer sentiment was mixed. The University of Michigan’s early June reading increased 15.9% from May, although still down 11.3% year-over-year. Inflation expectations eased and vehicle buying conditions improved. Morning Consult’s daily index, however, declined 0.7% in June following a 7.1% jump in May, suggesting caution remains in future outlooks.
Gas prices held steady, down 0.1% from May and 9% lower compared to last year, according to AAA.
