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Trends continue to normalize after a strong start to the year, as consumers contend with higher gas prices in the coming summer months.
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The Iranian conflict and rising gas prices inject much uncertainty into the future wholesale used vehicle markets, as higher gas prices soak up spendable income from vehicle buyers.
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Demand signals remain strong at auctions, with sales conversions, a clear sign of demand, reaching 68.2% in the most recent measure.
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Solid demand at Manheim auctions with higher sales conversion rates indicate an appetite from dealers to buy.
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Wholesale values moved even faster than expected on the back of strong retail demand, driving the MUVVI to its highest reading since September 2023.
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The Manheim Used Vehicle Value Index sees stable performance for the year and forecasts normal vehicle depreciation for 2026.
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While consumer sentiment remains subdued, early reads suggest confidence is recovering amid good vehicle sales supported by lower APR rates.
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As the month progressed, used retail sales were higher each week, ending with tighter inventory levels.
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Wholesale values remain elevated against normal depreciation trends, even with declines in September, and right as tax incentives on EVs end.
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Changes in wholesale values have defied gravity this year, as the industry sees lower used-vehicle inventory levels and increased consumer demand for affordable vehicles
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