Wholesale prices of used vehicles in the US increased annually in June amid strength in the electric vehicle segment, Cox Automotive said Wednesday.
The Manheim used vehicle value index reached 212.9 last month on a seasonally adjusted basis, up 2.1% year over year and 0.1% from May, according to the automotive services and technology provider.
"The first half of the year is officially in the books, and wholesale values finished on solid footing," Cox senior director Jonathan Gregory said. "The story of the first half is a strong tax-refund season that pushed values to levels we haven't seen in a few years, peaking in March before normalizing, leaving the index about 1% off that March high."
The EV index saw a 12% year-over-year gain in June and was up 1.7% from the month prior, while non-EV index rose 1.7% annually and 0.2% sequentially. Affordable compact cars have shown "relative strength" in the last few months, while sport-utility vehicle and pickup prices have faltered, compared with a year ago, according to the report.
Sales conversion, which the firm said is its "clearest read" on dealer demand, came in at 57.5% for the month. That's still 2.6 points above the three-year norm for June "even as the rate itself has eased steadily since spring," Gregory said.
"The risk we're watching for the second half is that steep ramp in off-lease supply, EVs especially, which could pressure specific segments even as the headline holds firm," Gregory said. "Gas is the swing factor: If pump prices keep falling, some of that EV demand could fade as availability increases."
US retail gasoline prices averaged $3.796 per gallon Wednesday, compared with $4.164 a month ago, according to data from AAA, a travel organization that tracks fuel prices in the country.
Despite the stronger-than-projected spring demand, the year-end outlook remains unchanged, with the Manheim used vehicle value index seen finishing 2026 about 2% higher than a year ago, which Cox said is consistent with "long-term historical norms."