Used Car Prices Flatten as Fuel Costs Drive Shift to Efficient Models

Key points

• Cox Automotive revised its Manheim Used Vehicle Value Index forecast from a 2% increase to just 0.2% for the year, marking the third year of flat pricing.
• Wholesale used vehicle prices dropped 1.2% year-over-year in September, with non-adjusted values falling 1.3% from August as depreciation accelerated.
• The national average gas price reached $4.33 per gallon in September, 50 cents higher than the 2023 record, driving demand for fuel-efficient used vehicles.
• Electric vehicle values rose 4.3% year-over-year, while non-EV prices fell 1.6%, reflecting a shift in consumer preference away from large trucks and SUVs.
• The average listed price for a used vehicle was $27,239 in August, significantly lower than the over $50,000 average for new models.

Background

Recent months have seen rising fuel costs, with gas prices hitting record highs in September 2026. Earlier this year, average prices for three-year-old used vehicles reached approximately $33,000, tightening affordability for budget shoppers. Current market dynamics follow a period of pandemic-era price volatility, with metrics now converging toward pre-pandemic norms despite ongoing inflationary pressures.

How outlets are covering it

Cox Automotive attributes the price stagnation to high diesel costs, rising interest rates, and a lack of hurricane-related demand boosts. CNBC highlights the broader impact of inflation on consumer pocketbooks and notes that retail demand remains healthy despite price ceilings. Both sources agree that fuel efficiency is reshaping the market, with EVs and compact cars outperforming larger vehicles, though Cox emphasizes the specific depreciation of diesel-dependent trucks.

Why it matters

The flattening of used car prices offers relief to consumers facing high new vehicle costs and inflation. However, the shift toward fuel-efficient models indicates a structural change in the market driven by energy costs, potentially affecting long-term values for traditional gasoline vehicles and influencing future trade-in decisions.

What to watch

Cox Automotive will release the next complete suite of monthly Manheim Used Vehicle Value Index data on November 6, 2026. Analysts will monitor whether the wealth effect from financial asset growth can offset falling consumer sentiment and rising interest rates in the fourth quarter.