The U.S. wholesale used-vehicle market closed out a volatile 2025 with a whisper of stability, as prices showed just a marginal increase compared to the previous year. According to the December 2025 Manheim Used Vehicle Value Index (MUVVI), wholesale prices, when adjusted for mix, mileage, and seasonality, rose 0.4 percent year-over-year, with the index climbing to 205.5. The month-over-month change was only a 0.1 percent increase, a figure that aligns with the flat historical average for December, suggesting a return to more predictable seasonal patterns.
This quiet end to the year stands in contrast to the fluctuations observed throughout 2025. The market saw significant price increases in the spring and early summer before finding firmer ground in the latter half of the year. The December data appears to cement this stabilization, although affordability concerns continue to loom over the retail landscape.
“Consumer spending trends showed signs of a slowdown in December, as affordability concerns caused many to pull back on the spending reins, translating to depreciation trends catching up a bit in wholesale markets over the month,” said Jeremy Robb, Interim Chief Economist at Cox Automotive. “As we moved into the holiday period, we saw seasonal patterns in used retail sales slowing down, while new retail sales increased against November trends but remained lower compared to 2024.”
What About Segment Pricing?
Diving into specific vehicle segments, the market is firmly divided by a wealth gap. Year over year, luxury vehicles and electric vehicles (EVs) were the only vehicles in the market with higher prices. The EV Index was up 2.5 percent compared to December 2024, but that has to do, in part, to the significant depreciation the segment experienced in the first half of the previous year. EV values are still well below their 2022 peaks. The expiration of some government incentives will continue to affect EV values month-over-month, well into 2026, but as of now the prices have not seen an enormous impact following the removal of the tax credits.
Meanwhile, some of the most popular mainstream segments continued to show year-over-year declines. Compact cars, midsize cars, and pickup trucks recorded the most significant price drops compared to the prior year, reflecting a market increasingly fragmented by affordability. The only vehicles currently still driving value and heavy demand are luxury vehicles, a segment whose customer base is generally less effected by price to begin with.
Other Key Operational Metrics Heading Into 2026
The sales conversion rate for December was 56.8 percent; a figure 4.6 percentage points higher than the recent three-year average. This strengthening of demand suggests that despite broader economic pressures, buyers are still actively acquiring inventory. Meanwhile, wholesale supply rose to 31.7 days at the end of December, a seasonally normal increase for the holiday period but still below the pre-pandemic average of 36 days.
Looking ahead to 2026, the industry is watching for signs of increased retail demand. There are some emerging positive indicators that could energize the market through the first few months.
“New and used auto loan rates have fallen to the lowest level in a year, and consumers will soon see increased tax refunds hit their wallets,” said Robb. “As this plays out, we are expecting to see stronger demand in the auto market as the year gets underway.”
This potential boost in retail activity, combined with a more stable wholesale pricing environment, sets the stage for a cautiously optimistic start to 2026 for the used-vehicle market.
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