Used Vehicle Prices Expected to Stabilize in 2025
After a tumultuous few years, used vehicle prices are expected to stabilize in 2025, according to Cox Automotive’s Manheim Used Vehicle Value Index. The index, which tracks prices of used vehicles sold at U.S. wholesale auctions, is forecast to end 2025 with a 1.4% increase compared to December 2024.
The stability in pricing is a welcome development for potential car buyers, who have seen prices fluctuate wildly in recent years. In 2024, wholesale prices rose by 0.4%, following declines of 7% and nearly 15% in 2023 and 2022, respectively. These fluctuations were due in part to supply chain and parts problems that disrupted vehicle production and led to a shortage of new vehicles.
Although used vehicle prices are expected to stabilize, they are still higher than they were before the pandemic. Retail prices for consumers, which traditionally follow changes in wholesale prices, have not fallen as quickly as wholesale prices in recent years.
The average index move at the end of each year is typically around 2.3%, but this year’s forecast is a departure from the usual volatility. The index does, however, anticipate some monthly fluctuations due to selling seasonality and other factors.
Cox Automotive also forecasts that used vehicle sales will increase by 1% to 37.8 million in 2025, with 20.1 million of those being retail sales. This represents a 1.2% increase in retail sales.
Overall, the stabilization of used vehicle prices is a positive development for consumers, who are likely to find more affordable options in the coming year.