Wholesale Used-Car Costs Decreased in February – Remarketing

Wholesale used-vehicle costs (on a combination, mileage, and seasonally adjusted foundation) have been decrease in February in comparison with January, in response to the newest numbers from Cox Automotive.

The Manheim Used Car Worth Index (MUVVI) decreased to 204.1, reflecting a 0.1% enhance from a yr in the past. The seasonal adjustment drove the month-to-month transfer, as non-seasonally adjusted values rose. The non-adjusted value in February elevated by 1.4% in comparison with January, shifting the unadjusted common value up 0.8% yr over yr.

“With grey days and winter storms, it’s not unusual to see some volatility in wholesale tendencies relative to long-term run charges in February, and that’s what we skilled over the course of the final 4 weeks,” mentioned Jeremy Robb, senior director of financial and business insights at Cox Automotive, in a March 7 information launch. “Tax refund season drives the ‘spring bounce’ in wholesale markets, and it appears to have began off a bit slower this yr earlier than ramping up on the finish of February. The retail provide of used models is tighter than final yr’s, and tax refunds inspire shoppers to buy used automobiles, leading to stronger supplier demand at Manheim within the final week of the month.”

Manheim Car Values Finish Robust

In February, Manheim Market Report (MMR) values noticed some volatility however ended with stronger value appreciation within the final week of the month, with values rising 0.2% within the final week alone. During the last 4 weeks, the Three-Yr-Previous Index elevated by 0.5%. Those self same 4 weeks delivered a median enhance of 0.2% between 2014 and 2019, indicating valuation tendencies have been stronger than we often expertise presently of yr.

Over the month, every day MMR Retention, the typical distinction in value relative to the present MMR, averaged 99.0%, that means market costs moved nearer to MMR values this month and have been increased towards January ranges. In comparison with final yr, valuation fashions have been up by 1.1 share factors (110 foundation factors) for MMR retention, one-tenth of some extent increased than 2019 ranges for a similar interval. The common every day gross sales conversion fee rose to 60.4%, a rise of two.1 share factors in comparison with final month and just a little increased than standard presently of yr. For comparability, the every day gross sales conversion fee averaged 57.3% in February over the past three years.

Costs on Car Segments Range

Main market segments noticed blended tendencies for seasonally adjusted costs yr over yr in February. In comparison with February 2024, the luxurious phase rose probably the most, growing by 1.2%, with SUVs additionally performing higher than the business, growing 0.2% over the past yr. 

Compact vehicles declined probably the most underperforming the business, falling by 4.8% towards final yr. Mid-size sedans have been down 3.5%, and vehicles fell by simply 0.6%. 

In comparison with the earlier month, the truck phase carried out the most effective, shifting increased by 0.2%, whereas luxurious and SUVs have been additionally higher than the business general, falling by 0.5% and 0.7%, respectively. Faring worse than the business, compact vehicles confirmed the most important decline, falling 1.6% over the past month, and mid-size sedans have been down 1.1%.

Wanting on the market by powertrain in February, electrical automobiles (EVs) misplaced among the month-to-month positive aspects seen in the previous couple of months. Nonetheless, they fell much less towards January than the business general. EV values have been down 0.2% towards January 2025, whereas non-EVs declined by 0.5% over the identical time interval. For February 2025, EV values are down 6.2% towards February 2024, whereas non-EVs have been decrease by 0.5% yr over yr, a bit decrease than the general business common.

Retail Used-Car Gross sales Have been Up in February

Assessing retail automobile gross sales primarily based on noticed modifications in models tracked by vAuto, preliminary estimates of retail used-vehicle gross sales in February have been up 8% in comparison with January and better yr over yr by 8%. A used automobile’s common retail itemizing value decreased 0.6% over the past 4 weeks.   

Utilizing estimates of retail used days’ provide primarily based on vAuto knowledge, an preliminary evaluation signifies February ended at 45 days’ provide, down three days from 48 days on the finish of January and down 5 days from February 2024 at 50 days.

New-vehicle gross sales in February have been down 0.7% from final yr, but quantity elevated 10.6% from a weaker January. The February gross sales tempo, or seasonally adjusted annual fee (SAAR), got here in at 16.0 million, up 0.3 million from final yr’s tempo and better than the weaker 15.5 million stage in January.

Mixed gross sales into giant rental, industrial, and authorities fleets decreased 12.3% yr over yr in February. Together with an estimate for fleet deliveries into supplier and producer channels, the remaining new retail gross sales have been estimated to be up 3.9% from final yr, resulting in an estimated retail SAAR of 12.8 million, up 4.6% from final yr’s tempo, and likewise increased than January’s estimated 14.0 million stage. Fleet share was estimated to be 18.4%, down from final yr’s 22.0% share.

Rental Danger Worth and Mileage Outcomes Increased YOY

The common value for rental danger models bought at public sale in February elevated 1.9% yr over yr. Moreover, rental danger costs rose by 1.2% in comparison with January. Common mileage for rental danger models in February (at 55,300 miles) rose 15.6% towards final yr’s stage, the very best stage for February readings since 2023. For February, the rental unit common mileage was 0.9% decrease in comparison with January 2025.

Measures of Shopper Confidence Declined in February

• The Convention Board Shopper Confidence Index declined 6.6% in February, worse than the decline anticipated; however January’s index was revised increased. Shoppers’ views of the current and the longer term declined, however views of the longer term declined probably the most. Shopper confidence was down 6.2% yr over yr. Plans to buy a automobile within the subsequent six months declined modestly to the bottom stage since final February however plans to buy have been barely increased yr over yr. 
• The sentiment index from the College of Michigan declined 9% in February to 64.7, decrease than anticipated and marked a bigger decline than the sooner studying at the start of the month. With the ultimate month-to-month lower, the index was down 15.9% yr over yr to the bottom stage since November 2023. The underlying views of present situations and future expectations declined, with present situations falling probably the most. Expectations for inflation in a single yr elevated to 4.3% from 3.3%, and expectations for inflation in 5 years elevated to three.5% from 3.2%. Shoppers’ views of shopping for situations for automobiles declined to the bottom stage since August as views of costs deteriorated. However the views of rates of interest have been regular. 
• Morning Seek the advice of’s every day client sentiment index declined 1.7% in February, including to the slight 0.1% decline in January. The index ended the month up 6.3% yr over yr. 
• In keeping with AAA, the nationwide common value for a gallon of unleaded fuel remained at $3.10, unchanged in February from the tip of January however down 7% yr over yr.