U.S. wholesale used-vehicle prices declined for a second consecutive month in August, extending their retreat from the spring as depreciation accelerated across parts of the market while demand remained comparatively resilient for older, more affordable vehicles.
The Manheim Used Vehicle Value Index, a widely followed benchmark of wholesale used-vehicle prices, fell 0.9% from July on a mix-, mileage- and seasonally adjusted basis. Compared with August 2025, prices were up just 0.4%, the weakest annual increase since December. Cox Automotive’s mid-August reading had already pointed to softer conditions, with the index down 1.2% from July during the first half of the month.
The August decline followed a 1.4% monthly drop in July, when the index stood at 210. At that point, prices were still 1.3% above year-earlier levels.
EVs and Compact Cars Show Greater Resilience
Performance continued to vary considerably by vehicle segment.
Electric vehicles and compact cars showed greater resilience compared with year-earlier levels, while pickups and SUVs remained under pressure. The pattern was already evident by mid-August, when Cox Automotive reported that compact cars were up 2.2% year over year and used EV values were 5% higher, while SUVs and pickups recorded declines.
Elevated gasoline prices have contributed to stronger relative demand for smaller vehicles and EVs. Cox Automotive reported that the national average gasoline price had reached $4.06 per gallon by Aug. 17, compared with roughly $3.14 a year earlier.
Older, More Affordable Cars Remain in Demand
The age of vehicles also played an important role in August’s market.
Newer used vehicles experienced greater depreciation, while older and generally less expensive vehicles maintained stronger values. Nine- and 10-year-old vehicles remained approximately six percentage points above their long-term averages, according to the August data.
The divergence highlights continued demand at the more affordable end of the U.S. used-car market, even as overall wholesale prices have softened.
Cox Automotive had described the summer decline as a normalization following a strong spring. In July, its economists noted that wholesale values had been falling after the market’s spring rebound peaked in March.
Used-Car Inventories Tighten
Retail conditions provided some support to the wholesale market. Used retail sales strengthened through August, while retail days’ supply declined to 44 days from 46 days at the end of July.
Stronger retail demand and tighter inventories can encourage dealers to replenish their stocks through wholesale auctions, providing support for purchases through Manheim.
The August data therefore point to two distinct trends in the U.S. used-vehicle market: overall wholesale prices continue to normalize after their earlier increase, while limited supply and demand for affordable transportation are helping older and lower-priced vehicles retain comparatively stronger values.
