The Manheim Used Vehicle Value Index (MUVVI) rose to 212.3, marking a 4% increase in wholesale used-vehicle prices compared to the previous year.

Month-over-month, the index is up 0.8%, outperforming the typical February trend, which usually sees a slight decline.

Non-adjusted wholesale vehicle prices also climbed 4.2% year-over-year and 3% compared to the prior month, exceeding historical norms.

These figures indicate a robust demand for used vehicles, highlighting trends that dealers and buyers should watch closely.

<h3>Expert Perspective</h3>

Jeremy Robb, Chief Economist at Automotive Research, states that strong demand at Manheim has fueled higher sales conversion rates. Dealers are showing greater willingness to purchase vehicles, with prices increasing faster than usual in the latter half of February.

With warmer weather approaching across much of the U.S., retail demand for both new and used vehicles is rising. Higher average tax refunds this year are contributing to increased dealership traffic. Early in the month, economic uncertainty may slightly temper consumer spending, especially as fuel prices fluctuate. However, demand is expected to strengthen steadily as the month progresses.

<h3>MMR Prices, Retention & Sales Conversion</h3>

Three-Year-Old Index prices increased 3.1%.

Retention averaged 100.3%, up 0.3 percentage points year-over-year and month-over-month.

Sales conversion reached 61.5%, 0.4 percentage points above the recent three-year February average.

Takeaway: Prices for three-year-old vehicles are rising more than usual for this period. Retention remains strong, and sales conversion continues to reflect a healthy market appetite.

<h3>Segment Performance: Year-Over-Year Price Changes</h3>

Overall market prices increased compared to the previous year.

Luxury vehicles and non-electric models led the gains.

Compact cars and trucks experienced weaker growth.

Takeaway: Every major vehicle segment shows higher prices than last year, with luxury vehicles consistently outperforming the broader market. Compact cars and trucks, however, continue to lag behind in price growth.

<h3>EV versus Non-EV Index</h3>

Electric Vehicles (EVs): Up 1.8% year-over-year, and 0.8% higher than the previous month.

Non-EVs: Up 3.7% year-over-year, and 0.9% higher month-over-month.

Takeaway: Government-backed EV incentives have expired, moderating price growth, but EV values remain notably higher than last year, when they experienced faster depreciation.

<h3>Wholesale Supply</h3>

Wholesale days' supply fell to 26.7 days, slightly higher than last year and marginally lower than the previous month.

Rental vehicle prices increased 9.1% year-over-year and 6% compared to the prior month.

Non-seasonally adjusted rental values rose 8.6% from the previous year, fueled by lower average mileage.

Takeaway: Supply remains tighter than historical February averages, supporting stronger pricing. Rental vehicle values continue to rise due to lower usage and ongoing demand.

<h3>Conclusion</h3>

Used vehicle markets remain resilient, with notable price gains across multiple segments. Luxury models lead growth, while compact cars and trucks show slower increases. EV prices are moderating but remain higher than a year ago. Retail demand is strengthening, aided by seasonal factors, and wholesale supply remains lower than historical norms. For dealers and buyers, understanding these trends is key to navigating the evolving market successfully.