Used-vehicle values at dealer-only auctions were up a substantial 3.6% last month versus May 2025, according to the latest Manheim Used Vehicle Value Index.
The increase is likely a function of a couple of factors, driven directly or indirectly by affordability, according to Jeremy Robb, chief economist for Cox Automotive. The Manheim auction firm is a Cox Automotive company.
The Manheim Index, a proprietary benchmark for U.S. used-vehicle pricing weighted for a changing mix of product segments and mileage, was at 212.6 for May — corresponding to a seasonally adjusted average price of $19,448. It has signaled year-over-year increases in 17 out of the last 18 months.
One driver of higher used car prices, Cox pointed out in a weekly summary, is that some new-car shoppers are turning to used vehicles instead. That growing “substitution” effect is driving up used-car prices at the wholesale level, which is passed along to retail customers.
In a similar vein, some used-vehicle shoppers are downsizing to smaller vehicles, also to avoid higher sticker prices.
“Some of the most affordable segments are showing the highest gains so far this year, with compact cars higher by 12.3% in non-adjusted values since December, the highest of any major segment,” Robb said, in a press release.
In addition, high gas prices are also driving demand, and therefore higher prices for used electric vehicles.
“We continue to see dealers bidding up the prices of EVs faster than non-EV values at Manheim, consistent with gas prices that remain higher by 38% against last May,” Robb said in the release.
According to AAA, the national average price per gallon of regular gas was $4.16 for June 9, up more than 33% versus a year ago.
The increase in used-EV values occurs despite an increase in inventory of these models.
The used-EV inventory boost reflects a much faster-growing market for new electric models three years ago. Those new vehicles were heavily leased, a majority of which were for 36 months.
