Wholesale Used-Vehicle Prices Rose in January – Remarketing

Wholesale used-vehicle prices (on a combination, mileage, and seasonally adjusted basis) moved 0.4% higher in January in comparison with December, causing the Manheim Used Vehicle Value Index (MUVVI) to extend to 205.6, a gain of 0.8% from a yr ago. 

The index’s seasonal adjustment muted the month’s movement, as non-seasonally adjusted values rose faster than seasonally adjusted values. The non-adjusted price in January increased by 0.6% in comparison with December, moving the unadjusted average price up 1.1% yr over yr.

“While it’s not yet spring, wholesale values increased greater than we normally see in January, with particular strength at the tip of the month,” said Jeremy Robb, senior director of economic and industry insights at Cox Automotive, in a Feb. 7 news release. “The Manheim index is at the best point since October 2023, after we experienced stronger-than-usual gains in non-seasonally adjusted values. Currently, retail days’ supply at used dealerships sits nine days lower than last yr, and we are only now on the cusp of starting the spring wholesale market.”

In January, Manheim Market Report (MMR) values saw mixed moves over the course of the month. Still, they ended with the last week of January seeing strong price appreciation, with values rising 0.4% within the last week alone. During the last 4 weeks, the Three-Yr-Old Index increased an aggregate of 0.2%, including a decline of 0.5% within the third week of the month. Those self same 4 weeks delivered a median decrease of 0.1% between 2014 and 2019, indicating depreciation trends were lower than we normally experience at the moment of the yr.

Over the month, day by day MMR Retention, which is the typical difference in price relative to the present MMR, averaged 98.8%, meaning market prices moved away from MMR values this month and were lower against December levels. In comparison with last yr, valuation models were lower by 0.5 percentage points for MMR retention, and so they are eight-tenths of some extent lower than 2019 levels for a similar period. The common day by day sales conversion rate rose to 58.8%, a rise of 5.7 percentage points in comparison with last month and a little bit higher than normally seen at the moment of yr. For comparison, the day by day sales conversion rate averaged 54.4% in January during the last three years.

Vehicle Segment Prices

Major market segments saw mixed trends for seasonally adjusted prices yr over yr in January. In comparison with January 2023, luxury was up probably the most, rising by 2%, with SUVs also up 1.2%. Performing worse than the industry, mid-size sedans were down 1.6%, trucks down 2.1%, and compact cars declined probably the most, falling by 3.4% in comparison with last yr. 

In comparison with the previous month, the posh segment rose probably the most, moving higher by 2.7%, while SUVs were up 1.2% within the period. Faring worse than the industry overall, mid-size sedans were down 0.9%, trucks declined 1.8%, and compact cars showed the most important decline, falling 2.1% during the last month.

Taking a look at the market by powertrain, electric vehicles (EVs) were higher against December, showing their third consecutive month-over-month rise, which was also stronger than the industry average overall. EV values were up 2.1%, while non-EVs rose 0.4% over the identical period. 

Seasonally adjusted EV values in January proceed to indicate declines versus the prior yr, that are smaller than in previous months. For January 2025, EV values are down 5.1% in comparison with January 2024, while non-EVs were up 0.3% yr over yr, a bit lower than the general industry average.

Retail Used-Vehicle Sales Were Up in January

Assessing retail vehicle sales based on observed changes in units tracked by vAuto, initial estimates of retail used-vehicle sales in January were up 6.2% in comparison with December and better yr over yr by 15%. The common retail listing price for a used vehicle decreased 1.3% during the last 4 weeks.  

Using estimates of retail used days’ supply based on vAuto data, an initial assessment indicates January ended at 47 days’ supply, down three days from 50 days at the tip of December and down nine days from January 2024 at 56 days.

Latest vehicle sales in January were up 3.8% from last yr, yet volume declined 25.7% from a powerful December. The January sales pace, or seasonally adjusted annual rate (SAAR), got here in at 15.6 million, up 0.6 million from last yr’s pace but lower than the strong 16.9 million level in December.

Combined sales into large rental, business, and government fleets decreased 0.9% yr over yr in January. Including an estimate for fleet deliveries into dealer and manufacturer channels, the remaining recent retail sales were estimated to be up 6.6% from last yr, resulting in an estimated retail SAAR of 12.5 million, up 2.1% from last yr’s pace but down from December’s estimated 14 million level. Fleet share was estimated to be 16.4%, down from last yr’s 18.7% share.

Rental Risk Price and Mileage Results Remain Mixed Against Last January

The common price for rental risk units sold at auction in January decreased 0.4% yr over yr. Nonetheless, rental risk prices rose by 0.8% in comparison with December. Average mileage for rental risk units in January (at 55,800 miles) rose 23.6% for the month against last yr’s level, leading to the best mileage seen since July 2023. For January, rental unit average mileage was also higher by 7.9% from December 2024.

Measures of Consumer Confidence Declined in January

• The Conference Board Consumer Confidence Index declined 4.9% in January, which was worse than the small decline expected; but December’s index was revised much higher. Consumers’ views of each the current and the long run declined, however the view of the current declined probably the most. Consumer confidence was down 6.1% yearly, the primary yearly decline since September. Plans to buy a vehicle in the following six months dropped to the bottom level since August but plans to buy remained higher yr over yr. 
• The sentiment index from the University of Michigan declined 3.9% in January to 71.1, which was lower than expected as it declined farther from the sooner reading initially of the month. With the ultimate monthly decline, the index was down 10% yr over yr. The underlying views of current conditions and future expectations declined, with expectations falling probably the most. Expectations for inflation in a single yr increased to three.3% from 2.8%, and expectations for inflation in five years increased to three.2% from 3.0%. Consumers’ views of shopping for conditions for vehicles declined modestly as views of rates of interest deteriorated, however the views of costs were less negative. 
• Morning Seek the advice of’s day by day consumer sentiment index saw a 0.1% decline in January, ending the previous six-month streak of increases. The 0.1% decline for the month reversed the 0.1% increase in December, leaving sentiment where it was at the tip of November. The day by day index peaked in mid-January at the perfect level since March 2020. With the January decline, the index was up 11% yearly. 

In line with AAA, the national average price for a gallon of unleaded gas increased to $3.10 in January, up 1.3% from the tip of December but down 2% yr over yr.