US Used Car Prices Fall the Most in Over 2 Years

The US Manheim Used Vehicle Value Index jumped 2.4% month-over-month in January 2026, the most since April last year, compared to a 0.1% gain in the previous month. EV prices increased 0.4% from December and Non-EV went up 2.2%. “We had planned for a stronger January from a pricing perspective, but wholesale values moved even faster than we expected on the back of strong retail demand, driving the MUVVI to its highest reading since September 2023. With tax refund season officially starting last week, we are expecting that more consumers will be getting refunds – and that the size of those refunds will hit a new record. Those factors should help consumers punch the ticket on some big-ticket purchases”, according to Jeremy Robb, Chief Economist, Cox Automotive. Year-on-year, used car prices also increased 2.4%, led by the luxury segment (1.6%) and non-electric vehicles (2.2%), while compact cars posted a 0.2% decline. Prices for EVs increased 0.8%.

The US Manheim Used Vehicle Value Index increased 0.1% mom in December 2025, following a 1.3% rise in November. Non-EV prices were up 0.1% while the EV segment fell 0.1%. Year-on-year, prices for used vehicle sales rose 0.4%. Prices for the luxury segment went up 1.8% to outperform the overall market again, as it is more influenced by higher EV prices. Compact (-5.3%), midsize cars (-2.3%) and pickups (-3.4%) continue to see large declines compared to last year. “At Manheim, the year ended with days’ supply rising over the month, as is seasonally normal during the year-end holiday period. As we move into 2026, a few positive indicators are emerging: New and used auto loan rates have fallen to the lowest level in a year, and consumers will soon see increased tax refunds hit their wallets. As this plays out, we are expecting to see stronger demand in the auto market as the year gets underway.”, Jeremy Robb, Cox Automotive said.

The US Manheim Used Vehicle Value Index rose 1.3% mom in November 2025, its first and strongest increase in five months, following a 2% decline in October. Non-EV prices were up 1.3% while the EV segment jumped 2.3% amid the post EV tax credit expiration. Year-on-year, prices for used vehicle sales were unchanged. Prices for the luxury segment went up 2.9% to outperform the overall market again, as it is more influenced by higher EV prices. Compact (-6.8%) and midsize cars (-4.5%) continue to see large declines compared to last year. “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”, Jeremy Robb, Cox Automotive said.