DETROIT, Oct. 7 — U.S. wholesale used-vehicle prices weakened through the third quarter as higher fuel costs, inflation and borrowing expenses pressured consumers, while demand strengthened for electric cars and other fuel-efficient vehicles.
Cox Automotive’s Manheim Used Vehicle Value Index fell to 205.9 in September, down 1.1% from August and 0.6% from a year earlier after adjustments for vehicle mix, mileage and seasonality. The index is a closely watched measure of prices paid for vehicles at U.S. wholesale auctions.
On a non-seasonally adjusted basis, wholesale used-vehicle prices fell 1.3% from August and 1.2% from a year earlier as depreciation accelerated during the third quarter.
The weakening market prompted Cox Automotive to sharply reduce its forecast for used-vehicle values in 2026. The company now expects the Manheim index to rise just 0.2% for the year, compared with an earlier forecast for a 2% increase.
The decline follows stronger-than-usual pricing during the first half of the year, when used-vehicle values benefited from seasonal demand and tighter supply.
Higher gasoline prices and pressure on household budgets have since changed buying patterns, with consumers increasingly favoring smaller and more fuel-efficient vehicles.
Fuel-efficient cars outperform larger vehicles
Electric vehicles were among the strongest-performing categories in September.
Used EV wholesale values rose 4.3% from a year earlier and 0.6% from August, while values for non-electric vehicles declined 1.6% year over year and 1.7% from the previous month, according to Cox data.
Compact cars also outperformed larger vehicles such as pickup trucks and sport utility vehicles, reflecting growing consumer interest in reducing fuel costs.
The shift is even more pronounced when vehicles are compared by fuel economy.
Cox’s third-quarter data showed wholesale values for non-electric vehicles capable of at least 40 miles per gallon rose 9.9% since January. Vehicles rated below 15 miles per gallon, by comparison, lost about 15% of their value over the same period.
Earlier September data from Cox had already shown compact cars and EVs as the only major segments with values above year-earlier levels, while midsize vehicles, SUVs and pickups were weaker.
Higher costs pressure car buyers
The changing used-car market comes as American households face elevated fuel prices and higher financing costs.
Those pressures can affect both the type of vehicle consumers choose and how much they are willing to spend, increasing the appeal of cars that require less fuel.
Higher interest rates are another potential headwind. Cox has said auto loan rates are more closely tied to longer-term Treasury yields than directly to the Federal Reserve’s benchmark rate, but rising borrowing costs and pressure on household budgets could still weigh on vehicle demand.
The trend does not mean all fuel-efficient vehicles are becoming more expensive at retail.
CARFAX reported that asking prices for used hybrids and EVs declined in September as a growing number of vehicles returned to the market following leases. At the same time, prices for traditional passenger cars such as sedans and hatchbacks increased as buyers sought cheaper and more fuel-efficient alternatives to SUVs and pickups.
Wholesale price movements typically reach consumers with a lag, meaning continued declines at dealer auctions could eventually provide some relief for used-car buyers.
For now, the data point to an increasingly divided market: larger, fuel-hungry vehicles are losing pricing power, while efficient cars and EVs are benefiting from changing consumer priorities.
