Critical Shifts:
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Market Stabilization and Seasonal Cooling: The wholesale market is beginning to settle into a more normal seasonal pattern following a strong spring. While the Manheim Used Vehicle Value Index declined 1.6% from March, prices remain elevated compared to long-term historical averages, suggesting a market that is stabilizing rather than weakening significantly.
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EV and Luxury Outperformance: Electric vehicles and luxury models are currently the strongest segments in the wholesale market. The Manheim EV Index rose 7.2% year-over-year, significantly outperforming non-EV segments, while luxury vehicles continue to show more pricing resilience than mainstream midsize cars and SUVs.
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Shifting Consumer Demand Factors: Rising fuel prices—up 47% since late February—and the conclusion of the tax refund season are impacting buyer behavior. This shift is expected to increase demand for more affordable, older inventory segments and fuel-efficient options as consumers navigate higher costs at the pump.
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After months of strong auction activity, the latest wholesale used car prices and used vehicle values from Manheim show the market cooling slightly in April, giving used car dealers early signs that conditions may finally be settling into a more normal seasonal pattern.
The Manheim Used Vehicle Value Index (MUVVI) declined to 211.9 in April, representing a 1.8% year-over-year increase in wholesale used vehicle prices after adjusting for mix, mileage, and seasonality. Compared to March 2026, the index fell 1.6%, marking a softer-than-normal April performance for wholesale pricing.
For used car dealerships closely monitoring auction values and inventory acquisition costs, non-adjusted wholesale prices still showed resilience, rising 2.8% year over year and increasing 0.4% month over month.
“A strong tax refund season drove consumers toward used vehicles early this year, and that kept demand and values high at Manheim through the spring market,” said Jeremy Robb, chief economist at Cox Automotive. “The Manheim Index fell in April and non-seasonally adjusted values weren’t quite as strong as normal for this time of year. But that doesn’t mean prices are weak — current values are declining at normal rates for this time of year and remain elevated against long-term averages for the end of April.”
Robb also pointed to rising fuel prices as an emerging concern for dealerships and consumers alike.
“The price of gas just hit a high for the year and is up 47% since the end of February,” Robb said. “Those higher prices are soaking up a lot of the extra money in consumers’ pockets.”
For independent dealerships and used car retailers, the shift could increase demand for affordable used vehicles and older inventory segments during the summer months.
EV Demand Continues to Outperform Traditional Used Vehicles
One of the strongest trends impacting used car dealerships is continued growth in electric vehicle demand at wholesale auctions.
The Manheim EV Index increased 7.2% year over year and climbed 1.4% from March, significantly outperforming non-EV vehicles. By comparison, the Non-EV Index rose just 1.1% year over year while declining 2.2% month over month.
“Buying interest in electric vehicles (EVs) is also on the rise, pushing wholesale EV prices to outperform non-EVs,” Robb said. “Right now, they are strong, and shoppers are considering these vehicles as a viable alternative.”
Dealers sourcing EV inventory are also expected to see increased off-lease volume entering the market over the coming months, potentially creating additional pricing opportunities as supply expands.
Luxury Vehicles Lead Wholesale Market Strength
Segment performance data showed luxury vehicles continuing to outperform the broader used vehicle market, while SUVs and midsize cars lagged behind year-over-year pricing trends.
For franchised and independent used car dealerships, the data reinforces ongoing strength in premium inventory categories despite softer demand in some mainstream segments.
MMR Retention and Sales Conversion Show Seasonal Softening
Manheim Market Report (MMR) prices for three-year-old vehicles declined 0.4% in April, slightly weaker than normal seasonal trends.
MMR retention averaged 99.7%, down modestly from both last year and March levels, while sales conversion rates reached 63.7%. Although conversion softened from March, rates remain above the three-year average for April, suggesting dealer demand at auction remains healthy overall.
For used vehicle retailers, the data points to a market that is stabilizing rather than collapsing, with wholesale buyers still actively purchasing inventory despite affordability pressures and elevated interest rates.
Wholesale Supply Increases Slightly
Wholesale days’ supply rose to 25.2 days at the end of April, slightly above historical norms and modestly higher than both last year and March levels.
Rental risk pricing also softened during April, with rental vehicle values declining 3.3% from March despite lower average mileage. However, rental prices remain above year-ago levels overall.
For dealerships looking to replenish inventory heading into summer, the slight increase in wholesale supply may provide improved buying opportunities compared to the tighter conditions seen earlier in the year.
Dealer Takeaway
April’s Manheim data suggests the used vehicle market is transitioning into a more balanced environment after a strong spring selling season. While wholesale prices softened modestly, values remain elevated historically, and auction demand continues to outperform normal seasonal trends.
For used car dealerships, the strongest opportunities continue to center around luxury inventory, affordable older vehicles, and growing consumer interest in used EVs as affordability pressures reshape buying behavior.
