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Manheim Used Vehicle Value Index Overview

The Manheim Used Vehicle Value Index (MUVVI) closed December 2025 at 205.5, reflecting a modest 0.4% increase in wholesale vehicle prices from the previous year. This indicates a stabilization in the used vehicle market after experiencing some fluctuations throughout the year due to various economic factors. As 2026 approaches, industry experts anticipate a more normalized depreciation rate and increasing influence from electric vehicles (EVs).

In December 2025, the values showed signs of resilience despite economic concerns affecting consumer purchasing patterns, particularly as inflationary pressures continued to influence spending. Jeremy Robb, interim chief economist at Cox Automotive, commented on the year-end outlook, noting that shifts in consumer spending had led to a slight decrease in retail sales but ultimately contributed to a recovering overall market trend.

Stability in the Used Vehicle Market

Throughout the year, used vehicle values oscillated mainly due to changes in tariffs and pricing strategies that impacted affordability. The average wholesale prices were stabilized by sustained retail demand, as evidenced by a 2% year-on-year increase in retail used-vehicle sales. December results showed that, although sales paced down slightly from the previous year, the demand for used vehicles remains relatively healthy.

The Manheim index clarified that, while values were slightly off from November's performance, this decline is within expected seasonal norms, indicating a market adjustment rather than a sharp downturn. On a monthly basis, December experienced a non-seasonally adjusted value increase of 0.5%, reinforcing signs of returning stability.

Electric Vehicles on the Rise

The Electric Vehicle (EV) sector notably outperformed the overall used vehicle market in 2025, with steady year-over-year increases observed throughout the year. The EV Index increased by 2.5% as it closed the year, signaling a robust demand for electric vehicles. Cox Automotive noted that higher sales rates of EVs, particularly in luxury segments, illustrate a broader trend where consumers are increasingly willing to invest in these options.

As the world transitions towards more sustainable driving options, the MUVVI reports indicate that the weight of EVs in the market will grow. As of now, EVs account for 3.3% of the robust wholesale market, with expectations that this percentage will continue to rise as more of these vehicles return to the resale market after lease maturities.

Forecast for 2026

Looking ahead, Cox Automotive projects that retail used-vehicle sales will reach approximately 20.3 million in 2026, indicating a slight decrease of less than 1% from 2025 sales, primarily due to constrained inventory levels. As production slows and lease returns diminish, however, the overall health of the market is expected to stabilize, contributing to a predicted 2% increase in the MUVVI by the end of 2026.

Importantly, indicators such as declining auto loan rates and expected increases in tax refunds may support a resurgence in vehicle demand early in the year. Robb highlights that if these economic conditions align positively, they could offset previous concerns and ignite consumer interest once again in both new and used vehicles.

Conclusion

The landscape of the used vehicle market is poised for a careful balancing act as economic trends continue to evolve. The 2025 MUVVI results reflect a response to various influences, from market stabilization to more pronounced electric vehicle presence. As we transition into 2026, stakeholders within the automotive industry will be keeping a watchful eye on these developments, ensuring the market adapts to consumer needs while embracing the future of mobility.