Wholesale used vehicle prices saw a nice rebound in November, signaling potential stability in the market heading into year-end. The Manheim Used Vehicle Value Index (MUVVI) rose to 205.4, a 1.3 percent increase from October when adjusted for mix, mileage, and seasonality. This upward movement is in line with last year, while the long-term average for November, which is a 0.6 percent decrease. Non-adjusted wholesale prices fell a modest 0.3 percent from October, which is still better than the historical average decline of 0.4 percent for the month.
“As November progressed, both new and used retail sales lifted from October levels, and the longest government shutdown in history came to an end,” said Jeremy Robb, Interim Chief Economist, Cox Automotive. “We’re seeing good vehicle sales supported by lower APR rates, and price depreciation is trending back to normal, with values slightly higher than usual. We’re also only a month from January, when lower tax withholding rates will boost take-home pay. Once consumers feel that in their paychecks and realize their tax refunds could be substantially higher this year, we are expecting some tailwinds to hit the auto market.”
Luxury Vehicles Dominate the Market
An analysis of different vehicle segments revealed an increasingly divided market. While overall prices were flat year-over-year, luxury vehicles continued their strong performance, posting the highest price increases. In contrast, compact and midsize cars recorded the most significant declines compared to the previous year, highlighting the ever-ongoing consumer preference for larger, more premium vehicles.
The electric vehicle (EV) segment also experienced a notable recovery. The EV index increased by 2.3 percent from October and was still up 6.1 percent year-over-year. This comes after the expiration of government-backed EV incentives, which severely downshifted demand. The removal of tax credits and the “leasing loophole” effectively raised the net cost for consumers, leading dealers to seek lower acquisition prices to maintain demand at the retail level.
Inventory Up as Demand Equalizes
On the supply side, wholesale inventory levels rose slightly, which is typical for this time of year. At the end of November, the days’ supply stood at 30.1 days, up from 27.9 days in October. This figure remains below the pre-pandemic average of 32 days, indicating that while supply is normalizing, the market is not over-saturated.
As the industry looks toward the new year, it would appear that the roughest waters are behind us. The first quarter of 2026 should hopefully be a more stable and less stressful time for dealers with recovering consumer confidence and spending. While the holiday season comes first, dealers can look ahead to the new year with more optimism than they’ve had for most of 2025.
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