Prices dealers pay for used vehicles at auction have started to fall. Cox Automotive's Manheim Used Vehicle Value Index, which tracks wholesale prices adjusted for mix, mileage and season, dropped 1.0% from August to 206.2 in the first 15 days of September. That left it 0.4% below September 2025, the first year-over-year decline of 2026 after a first half that ran stronger than normal. Unadjusted wholesale prices were down 1.1% from August and 1.1% from a year earlier.

"The market has fully given back the stronger pricing trend from the spring's tax-refund bounce." — Jonathan Gregory, senior director, Cox Automotive

Cox pointed to pressure on buyers' budgets. Gas prices "have continued to move higher amid renewed unrest in the Middle East," it said, and "the Federal Reserve's first rate hike in more than three years adds another potential headwind."

Small cars and EVs hold their value

Compact cars and EVs were the only major segments worth more than a year earlier at mid-month, which Cox said could reflect greater demand for fuel-efficient vehicles. EV values were up 2.3% year over year while non-EVs fell 1.3%, and midsize cars, pickups and SUVs were all below year-ago levels. Wholesale supply stood at 27.8 days on Sept. 15, about 2.4 days more than a year earlier, and auction sales conversion averaged 55.8%, down 1.4 points from a year earlier.

Retail prices are still high

Retail figures lag the auctions, and the latest ones show little relief. Cox's analysis of vAuto data put the average used-vehicle listing price at $27,239 in August, up 7% from a year earlier and the highest level since 2022. Vehicles listed under $15,000 were scarce: that inventory was down 25.9% and made up 15.1% of supply, compared with 20.6% a year earlier. Retail used sales totaled 1.50 million, down 3.2%. The government's consumer price index for used cars and trucks, a separate measure, was 2.3% lower than a year earlier in August.

CarMax trades profit per car for volume

CarMax is cutting prices to sell more. In its fiscal second quarter, which ended Aug. 31, retail used-unit sales rose 13.8% to 227,391 and comparable-store used-unit sales rose 13.0%. Gross profit per retail used vehicle fell $111 to $2,105, which the company tied to the continuation of pricing actions meant to support an improved sales trend. The average retail selling price was $27,623, up 6.3%, and wholesale units climbed 15.9% to 160,344.

Financing through CarMax Auto Finance got slightly more expensive: the weighted average contract rate rose 0.6 percentage point to 11.8%. Chief executive Keith Barr said the quarter showed "early progress against Shift into GEAR," the company's turnaround plan, which CarMax will detail at a strategic update on Nov. 3.

For shoppers, the opening is mostly in the segments losing value at auction: pickups, SUVs and midsize cars. Compact cars and used EVs are holding their prices better. Cox will publish the full-month September Manheim index on Oct. 7.