Driving the news: Wholesale used-vehicle prices fell slightly in the first half of August compared to July—despite stronger-than-normal sales activity, with electric vehicles posting the biggest gains ahead of federal tax credits ending next month.
For context: The Manheim Used Vehicle Value Index dropped to 206.5 but remained 1.2% higher than August 2024.
Month-over-month results were mixed: compact and mid-size cars rose 0.9% and 0.7% respectively, while luxury vehicles fell 1.4%, trucks dropped 0.7%, SUVs declined 0.3%, and EVs gained 0.5%.
But EVs are showing the strongest year-over-year gains of 4.2%.
Wholesale supply tightened to 25 days by mid-August, down from 26 days at the end of July.
Why it matters: The EV surge reflects buyers rushing to secure tax credits before they expire September 30, while tight inventory is forcing dealers to compete more aggressively at wholesale auctions. Jeremy Robb from Cox Automotive noted that
What they’re saying: "Used retail supply has further tightened in recent weeks to the tightest level since early April, and that is keeping buyers active at Manheim to replenish inventory," said Jeremy Robb, senior director of Economic and Industry Insights at Cox Automotive
Bottom line: The wholesale market is showing unusual volatility as dealers scramble to restock ahead of what could be a challenging fall season.
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