April saw a sharp increase in wholesale used vehicle prices according to Cox Automotive’s Manheim Used Vehicle Value Index. The Manheim Index climbed to 208.2, marking a 4.9 percent rise compared to last year and a 2.7 percent increase over March 2025.
It was also an increase from the mid-April value of 207.1, as the market momentum continued to raise prices throughout the month. On a non-seasonally adjusted basis, prices were up 3.3 percent from March, indicating significant growth fueled by strong demand and external factors such as tariffs.
Notably, this is the highest index reading since October 2023, reflecting a market characterized by elevated transaction values.
“The ‘spring bounce’ normally ends the second week of April, but this year, wholesale appreciation trends continued for the entire month and were much stronger than we typically observe,” said Jeremy Robb, senior director of Economic and Industry Insights at Cox Automotive. “We expected to see strong price appreciation in response to the tariffs, and that’s exactly what came. Weekly trends showed higher values as we moved through the month, but those increases tapered off each successive week.”
Vehicle Segment Pricing
The impact of rising average prices varied across different vehicle segments, showcasing how consumer demand and available inventory is shifting within the market. Luxury vehicles increased in price for the third month in a row, with an increase of 5.9 percent year over year. SUVs followed closely, recording a 5.5 percent annual increase, reflecting their enduring popularity among consumers.
Mid-size sedans and trucks also saw price increases, climbing 0.8 percent and 2.5 percent, respectively, compared to April 2024. On the other hand, compact cars are seeing lower prices than a year ago, with prices declining by 1.5 percent. Month-over-month trends were similar but not quite as aggressive. SUVs had the highest increase at 2.4 percent month over month, alongside similar gains in trucks and mid-size sedans. Interestingly, despite seeing large increases year over year, luxury vehicles were only up 1.5 percent compared to March. Also, while compact cars were down year over year, prices were still up 0.8 percent month over month.
Electric Vehicles Continue to Gain Ground
Electric vehicles (EVs) continue to carve out a growing presence in the wholesale market. April marked a turning point, as EV prices rose 1.6 percent year over year, marking the first such increase since March 2023. EV transaction volumes also reached record levels, as they accounted for 3.4 percent of all units sold. Month-over-month, EV prices increased by 2.2 percent.
However, non-EV vehicles still outpaced their electric counterparts in pricing, with values increasing by 4.7 percent year over year. Clearly, the demand for internal combustion engine powertrains is not going away any time soon, but the growth in EV sales highlights a rising consumer acceptance of sustainable options.
Retail Market Trends
Retail used-vehicle sales saw mixed results in April, slipping 1.7 percent from March but rising 13 percent year over year. Retail listing prices for used vehicles ticked upwards by 2 percent, while retail days’ supply extended to 41 days, one day higher than March but 5 days lower than in April 2024.
New vehicle sales also saw a notable uptick, climbing 11.1 percent year-over-year thanks to heightened activity prompted by tariff-related concerns. However, sales volumes dipped 8 percent from a strong March, signaling a potential pull-forward effect, where demand was expedited by buyers anticipating higher prices down the road. The April sales pace, measured as seasonally adjusted annual rate (SAAR), slowed to 17.3 million, though it surpassed last year’s total of 16 million.
Consumer Confidence Reflects Economic Challenges
As value continues to increase in the wholesale market, indicators of consumer confidence offered a contrasting narrative. The Conference Board Consumer Confidence Index dropped by 8.4 percent in April, while the University of Michigan’s sentiment index also fell, hitting its lowest level since July 2022. Inflation expectations rose amid concerns about the broader economy, with only a slight improvement in perceptions of interest rates.
However, the Michigan index ended up higher than was expected at the start of the month, indicating that some clarity around tariffs may be slowly leveling out customer sentiment. However, it remains to be seen how the rest of the second quarter will play out now that tariffs appear to be here to stay.
“Used retail sales remain stronger than normal, and wholesale days’ supply is a bit tighter, so we will likely see less depreciation than normal over Q2. As we move into the second half of the year, though, the auto market may slow as strong demand likely pulled some transactions forward in March and April as buyers tried to get ahead of expected higher prices due to tariffs.”
Related Stories:
