Used-Vehicle Pricing Continues to Ease
ATLANTA – Wholesale used-vehicle prices declined in March for the third consecutive month, illustrating the long-anticipated dip in pricing. This brought the Manheim Used Vehicle Value Index — a measure of wholesale prices adjusted for mix, mileage and season — to a reading of 122.5 in March, a decrease of 1.6% from a year ago.
“While wholesale prices have fallen each month in 2016, experts have long predicted pricing would ease this year and it’s no cause for alarm,” said Tom Webb, chief economist for Cox Automotive. “Evolving industry practices may be muting what used to be a strong spring pricing bounce, and it is important to keep in mind that wholesale prices increased somewhat this year before the history-based seasonal adjustment, which may be less relevant in today’s market.”
Preliminary numbers suggest that dealers had another strong used-vehicle sales month in March. According to the NADA, both franchised and independent dealers experienced double-digit gains in used-vehicle sales for the first two months of 2016. Additionally, with an increase of 215,000 jobs in March, total U.S. employment has risen by 13.9 million jobs over the past six years.
The stability in the labor market – measured by initial jobless claims or job openings per job seeker – provides the foundation for low risk-adjusted delinquency rates and, thus, good credit availability. As a testament to this, overall CPO sales were up 5.1% in the first quarter, with March coming in especially strong with a 9.6% increase.
For rental risk units, auction sales rose in March as higher new unit sales into rental allowed the retiring of older units in the fleet. The average auction price — adjusted for broad shifts in mix and mileage — rose 1% from February but was down 7.3% from a year ago.
Vehicles in the $7,000 to $10,000 price range continued to face the most competitive pricing pressure in the first quarter, while vehicles valued above $15,000 proved better. The percentage growth in auction volume was slanted towards units above $25,000, the firm noted.
Here’s a look of first quarter wholesale pricing by vehicle segment:
Compact Car prices were down 9.1% in March over the same period last year and continued to underperform the overall market due to extremely competitive pricing of new vehicles and more consumers shifting to small crossovers.
Midsize Cars, typically one of the weaker segments, showed a somewhat modest decrease of 1.7% compared with other car classes over the same period last year.
Pickups and Vans showed mixed results, as pickups represented the only uptick of all major market classes with a 7.4% increase while vans were down 2.4%. The increase in pickup pricing can be partially attributed to lower gas prices.
Luxury Car wholesale pricing performed poorly this quarter after stabilizing at the end of 2015 and was down 3.4% compared with last March.
SUVs and CUVs decreased 2% compared with last March despite the continued increase of vehicle miles of travel thanks to lower gas prices and favorable lending.
“While fundamentals suggest the current pricing trend will last longer than the earlier downturns in pricing in this cycle, the year as a whole is setting up well and we may be able to avoid extreme volatility in wholesale pricing,” said Webb.
More Industry

Charger Network Growth Slows
Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.
Read More →
Lenders, Consumers Take on More Auto Loan Risk
September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.
Read More →
Next-Gen Hybrids in Sight
Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.
Read More →
Gem State Stores Change Hands
A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.
Read More →
Charging In Motion
Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.
Read More →
Twin Cities Stores Sell
Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.
Read More →
U.S. Auto Sales Still Below Prepandemic Levels
Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.
Read More →
The Powertrain Shift
Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.
Read More →
Achromatic Autos
The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.
Read More →
Used-Vehicle Affordability Worsens
Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.
Read More →