Manheim Reports Stabilizing Wholesale Values Amid Market Pressures
Cox Automotive's October Manheim Market Insights update examines trends in the wholesale and retail used-vehicle markets, with a focus on vehicle supply, fuel economy, and interest rates. Senior Director Jonathan Gregory discusses how these factors are influencing used-vehicle values and buyer demand as the market enters the final quarter of 2026.
The mid-October Manheim Used Vehicle Value Index reached 207.4, up 2.2% year over year, as wholesale depreciation returned to a more typical seasonal pace. Electric vehicles outperformed the broader market, with values increasing 6.8% year over year compared with a 1.3% increase for non-EVs. Fuel efficiency is also playing a significant role in resale values. Since January, non-EVs averaging less than 15 MPG have lost 15% of their value, while vehicles achieving 40 MPG or more have gained 9.9%.
For fleets, these trends reinforce the importance of fuel economy when evaluating vehicle selection and future remarketing performance. Growing off-lease supply and rising consumer auto loan rates could create additional pressure on used-vehicle values, making accurate residual value forecasts and replacement timing increasingly important.
Canadian Wholesale Used-Vehicle Values Continue to Decline
Canadian wholesale used-vehicle values declined 0.27% last week, continuing the market's downward trend, although depreciation slowed slightly from the previous week. Car values fell 0.26%, while Truck and SUV values declined 0.28%. Full-Size Vans experienced the largest decline at 0.90%, followed by Compact Crossovers/SUVs at 0.55%. Sub-Compact Luxury Crossovers/SUVs were among the few segments showing gains, increasing 0.13%.
Rising Inflation and Interest Rates Add Pressure to Vehicle Ownership Costs
Inflation and higher borrowing costs continue to challenge the automotive market heading into 2027. According to Cox Automotive's October 19 market update, consumer inflation reached 3.7% year over year in September, driven largely by rising energy prices. Gasoline prices increased 34% from a year ago, while the benchmark 10-year Treasury yield remained elevated near 5.1%, keeping pressure on vehicle financing costs.