The wholesale used-vehicle market is demonstrating robust early-year momentum. According to the latest Manheim Used Vehicle Value Index (MUVVI) report for February 2026, the market has experienced a pricing uptick, signaling resilient consumer demand and highly active inventory procurement among dealers.
The MUVVI advanced to 212.3 in February, marking a 4% year-over-year increase when adjusted for mix, mileage, and seasonality. This also represents a 0.8% increase month over month. Historically, the long-term average monthly move for February is a decrease of 0.2%, underscoring how unconventional the current market is. Furthermore, non-adjusted wholesale prices increased by 4.2% from last year and climbed 3% against January 2026.
Key Performance Metrics Shaping the Market
Several core indicators reflected this upward trajectory and point to a highly engaged dealer network:
- Sales Conversion: Wholesale sales conversion reached 61.5% for the period. This rate sits 0.4 percentage points higher than the recent three-year average for February and represents a 1.4 percentage-point gain from January.
- MMR Retention: Manheim Market Report (MMR) retention averaged 100.3%, rising 0.3 percentage points both year over year and month over month. Prices for the Three-Year-Old Index also grew by 3.1% in February, showcasing seasonally strong retention that exceeded typical periods.
- Wholesale Supply: Wholesale days’ supply tightened to 26.7 days at the end of February. While this is slightly higher than last year, it sits comfortably below historical pre-pandemic norms, showing that vehicles are moving efficiently through the wholesale channel.
- Rental Market Dynamics: Rental values climbed by 9.1% year over year and rose 6% from January. On a non-seasonally adjusted basis, these rental values sit 8.6% above 2025 levels, driven largely by significantly lower average mileage on these specific units.
Segment Disparities
There is still a clear divergence when examining specific vehicle segments. While all major categories track above their year-earlier pricing levels, the luxury segment continues to firmly outperform the broader market. Conversely, compact cars and pickup trucks are experiencing relatively subdued price growth.
The EV Index increased by 1.8% year over year and 0.8% from January. With the expiration of government-backed EV incentives, depreciation has moderated significantly compared to the steep declines seen early last year. Meanwhile, the Non-EV Index showed stronger acceleration, rising 3.7% year over year and 0.9% from the previous month.
Economic Drivers and the Spring Outlook
Seasonal economic tailwinds are heavily influencing consumer behavior and retail demand. Earlier this year, severe winter weather temporarily slowed dealership foot traffic. However, as conditions improve across the country, so will retail demand for both new and used sales.
“Now that we are officially in March, with warmer weather ahead across much of the U.S., we have seen retail demand increasing in our most recent data points – for both new and used sales,” said Jeremy Robb, Chief Economist, Cox Automotive. “The average tax refund is running 10% higher this year, as we hit some of the strongest weeks for consumer filing, and we are expecting to see that translate to more traffic at dealerships in March.”
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