Wholesale used car prices rise again amid tariff disruption

The Manheim Used Vehicle Value Index climbed 6.3% year-over-year and was up 1.6% month-over-month on a seasonally adjusted basis. While non-seasonally adjusted prices dipped 1.1% from May, they remained 5.1% higher year-over-year. The used-vehicle market’s resilience was attributed to solid retail demand and a tightening supply of off-lease vehicles, both of which are helping to sustain elevated used-vehicle values. Analysts expect the market to normalize in the second half of 2025, but values are likely to stay relatively strong due to persistent supply constraints and steady retail activity.

“Wholesale appreciation trends have been more volatile over Q2 as tariffs really impacted new sales and supply, which impacted the used marketplace as well,” stated Co Automotive’s Jeremy Robb. “The Manheim index has generally been rising since last June, and we typically see the strongest changes for the year in the second quarter as the spring bounce comes to an end.”

Almost all major market segments were higher for seasonally adjusted prices year over year in June, except for compact cars. Compared to June 2024, the luxury segment rose the most for the fifth month in a row, increasing by 8.8%, with SUVs coming in the second and higher by 6.0% over the last year. Underperforming the industry-wide increase of 6.3%, both mid-size sedans and trucks increased 2.8%, and compact cars showed the worst performance, coming in down 0.1% against last year. All segments were higher compared to the previous month, with the luxury segment rising by 1.2%, while the trucks segment was higher by 1.1%. Both compact cars and SUVs were higher by 1.0%, while mid-size sedans rose 0.8% in the period.

Electric vehicle values showed significant gains compared to last year, partly due to the depressed values seen during the comparison period. Wholesale EV values experienced steep declines in the second half of 2023 and the first half of 2024, reaching their lowest point since Q3 2021 in June 2024. Since then, EV values have rebounded, with year-over-year appreciation trends outpacing those of non-EVs for the past three months.

In June, EV values were up 12.1% year over year, while non-EVs rose by 5.6%. “The used-EV market is becoming more diverse, moving beyond a concentration in just a few models like the Nissan Leaf and Tesla Model 3. This growing diversity has contributed to improved values and a more mature used-EV landscape,” highlighted Robb.

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