The latest sales data point to several reasons for the divergent trends in new and used EVs that can factor into fleet cycling decisions.
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The higher prices at used retail reflect strong wholesale values earlier in the spring, particularly for older, more affordable vehicles.
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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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While EV sales declined, used EV sales grew, as tighter inventory and rising prices reflected a more normalized pace for the EV market.
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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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Franchised and independent dealers had a total of 1.95 million used vehicles in stock in March, the lowest on record in the current data set.
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New EV sales declined year over year in February while used EV demand rose, as prices fell and inventory tightened across both segments.
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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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Vehicle buyers are seeing a favorable purchasing window, with factors such as declining prices, improving used vehicle credit rates, and continued gains in credit availability.
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