The used-vehicle market has seen month after month of price increases since the start of the year as customers look for affordable options to brand new vehicles. The raising prices, at least at wholesale, finally broke a bit in April according to the Manheim Used Vehicle Value Index (MUVVI).
The April 2026 report saw the index fall to 211.9, representing a 1.6% decline from March. However, when looking at the whole picture, prices are still inflated. Adjusted wholesale used-vehicle prices are up by 1.8% year over year. Non-adjusted wholesale values tell a similar story, sitting 2.8% higher than April 2025 and 0.4% higher than March 2026.
“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.”
What is Currently Affecting the Used Vehicle Market
Several macroeconomic factors are heavily influencing consumer behavior and wholesale pricing.
High Energy Prices
Affordability remains a central concern for consumers, heavily influenced by rising energy costs. Global conflicts have caused gas prices to increase 47% since the end of February. This spike in fuel costs is putting significant pressure on a consumer base that was already struggling with the affordability of a new vehicle. It has led to a shift in their purchasing power and altered the types of vehicles they choose to pursue.
Rising Interest in Electric Vehicles
As affordability drives decision-making, buying interest in electric vehicles continues to climb. Wholesale EV prices are currently outperforming their internal combustion engine counterparts. The EV Index saw a notable 7.2% year-over-year increase, alongside a 1.4% bump from March. In contrast, the Non-EV Index softened, dropping 2.2% from the previous month. Shoppers are increasingly viewing used EVs as viable, cost-effective alternatives, supporting strong valuations at the auction block.
Detailed Segment Performance
Monitoring specific vehicle segments provides a clearer picture of auction performance and dealer sentiment.
Three-Year-Old Index Performance
Manheim Market Report (MMR) prices for the Three-Year-Old Index decreased by 0.4% during April. MMR retention, which measures how well vehicles hold their expected value, averaged 99.7%. This represents a slight drop of 0.5 percentage points year over year and 0.7 percentage points from March, aligning with normal seasonal patterns.
Sales Conversion and Days’ Supply
Sales conversion rates offer a direct look into buyer demand at auctions. In April, the conversion rate settled at 63.7%. While this is a 3.5 percentage point decrease from March, it remains 3.3 percentage points higher than the most recent three-year average for April. Meanwhile, wholesale days’ supply crept up to 25.2 days, showing a minor increase from both the previous month and the previous year.
Future Outlook
While it is nice to see prices leveling out a bit, there was nothing too outside of seasonal norms in April. The market remains historically elevated and will almost certainly continue to be through the summer. The luxury segment and electric vehicles continue to demonstrate impressive price strength as they have for months now, whereas SUVs and midsize cars are lagging compared to last year’s performance.
“Affordability remains front and center, and that’s driving some increased demand for older vehicles at Manheim as well as changing the calculus for consumers shopping for EVs,” said Robb. “As we get into the summer months, we will continue to see off-lease EV maturities multiply at Manheim, and that may put downward pressure on valuations. But right now, they are strong, and shoppers are considering these vehicles as a viable alternative.”
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