Overview of Used Car Prices#
In February, used vehicle retail prices saw a decline of 3% compared to the same month last year, according to the used car Consumer Price Index (CPI). This drop coincided with a decrease in interest rates for used car loans, which were reported to be 60-70 basis points lower than the previous year.
Sales Trends#
Preliminary data from vAuto indicated that used vehicle retail sales rose by 6% in February. However, historical data revisions suggest that the final sales figures may show little change or only a slight increase.
Wholesale Prices and Loan Rates#
The Manheim Used Vehicle Value Index, which measures wholesale prices while accounting for factors like vehicle type, mileage, and seasonal trends, reported a 4% increase year-over-year in February. Additionally, interest rates for 48-month used car loans remained stable or slightly decreased in February compared to January, continuing to be 60-70 basis points lower than the same time last year.
CarMax and Carvana Insights#
CarMax reported an average selling price of $26,383 in the November 2025 quarter, a slight increase from $26,153 in the same quarter of the previous year. The average monthly payment for buyers was $516, compared to $514 the previous year, which is significantly higher than pre-pandemic levels of around $375. CarMax is set to release its fourth-quarter earnings in April, and analysts at Baird anticipate better-than-expected sales results.
Carvana also shared its average selling price of $25,416 for the December 2025 quarter, but it did not provide information on the average interest rate paid by its customers.