Ask any appraiser what's moving on the lot right now, and you'll probably hear the same thing: hybrids disappear fast, and big trucks take longer to sell. The wholesale data now shows just how wide that split has become.
At the auction, fuel economy is starting to matter as much as mileage.
Manheim Q3 Data: Wholesale Values by Fuel Economy
In Manheim's Q3 Used Vehicle Index report, Senior Director Jonathan Gregory broke down wholesale price changes by fuel economy, as reported by Car Dealership Guy.
Change in wholesale value:
40+ mpg (almost all hybrids): ▲ 9.9% since January
35 to 39 mpg: ▲ 3.7% since January
Below 30 mpg: ▼ every segment down
15 to 19 mpg: ▼ 8.8% over the past 10 months
Below 15 mpg: ▼ 15% over the past 10 months
That adds up to a 25% spread in nine months between the most and least efficient vehicles. Diesels are feeling it, too. They make up only about 3% of vehicles at Manheim, but their supply climbed to 39 days in September, 11 days above the overall market and up 27% from a year ago. The shift follows record fuel prices, with gas hitting $4.48 a gallon in September and diesel reaching an all-time high of $6.52.
"Consumers are trading down, from new to used and full size to compact. They are also considering MPGs." Jonathan Gregory, Manheim
How Fuel Economy Should Shape Dealer Used-Car Acquisition
With diesel costing far more than gas, heavy-duty diesel trucks make the most sense for stores that regularly sell to working buyers who need them. For everyone else, every diesel trade deserves a closer look before it lands on the lot.
On the other end, expect to pay a little more for high-mileage hybrids and efficient compacts, and make sure your appraisers know it. If your team is still appraising a 45-mpg trade like it's 2025, you could be losing those deals to the store down the street.
Now is also the time to train your sales team to sell efficiency, because more customers are asking about it.
Win the efficient trades this weekend, and they'll pay you back on the front line.
