Auto and Motor Vehicle Wholesalers

The 4,521 auto and motor vehicle wholesalers in the US sell or arrange the purchase or sale of new and used passenger cars, trucks, trailers, and other motor vehicles to commercial dealers. They buy from dealerships and auctions and sell to other dealerships and through auctions. Firms may offer financing, reconditioning, transportation, storage, inspection, and other services.

Seasonal Demand Affects Pricing

Demand for used vehicles peaks during the summer months, with volume often twice as high as in the winter, according to the National Auto Auction Association.

Volatile Pricing, Economic Vulnerability

Used vehicle wholesale pricing can be volatile and decline during periods of economic weakness.

Sep 29, 2026 - Fewer New Models Threaten the Trade-In Pipeline

• The auto industry’s shortage of fresh models could make it harder for vehicle wholesalers to find desirable late-model inventory. Automakers expect to redesign just 9% of their lineups across the 2026-2028 model years, well below the 20-year average of 14%, according to automotive analyst John Murphy. Without compelling new models to pull consumers back into showrooms, owners may keep their current vehicles longer, reducing the flow of trade-ins that eventually reach wholesale channels. The Wall Street Journal reports that dealership service departments already see more customers trying to extend the life of their vehicles. That could put additional pressure on supplies of newer used cars while keeping competition strong at wholesale auctions. Automakers are rushing to refresh their portfolios, but analysts say new model activity may not return to its usual pace for another year or two.
• Cox Automotive forecasts US new vehicle sales will reach 15.8 million units in 2026, a 2.4% decline from 2025, reflecting a slower but still healthy auto market after stronger-than-expected performance last year. The outlook is shaped by a fragmented economy: higher-income consumers should benefit from wealth gains, tax relief, and lower interest rates, while lower-income households continue to face affordability challenges. Other factors influencing the market include weak job growth, inflation uncertainty, shifting government policies, changes to EV incentives, and the growing impact of AI on productivity and retail operations. Cox projects retail new vehicle sales will fall 1.5%, fleet sales 6.1%, and used-vehicle sales slightly. Leasing rates are expected to decline, while wholesale used vehicle values should rise modestly. Overall, Cox expects modest declines across most automotive sales metrics but sees supportive factors, including lower rates and tax refunds, helping demand in early 2026.
• Automobile wholesale inventories are shrinking in Q1 2026 (down 3.1% YOY in March per the Census Bureau) as dealers struggle to replenish stock amid persistent supply shortages and strong demand for used vehicles. The market continues to feel the effects of pandemic-era production cuts, which reduced the number of late-model vehicles now entering wholesale channels through lease returns and trade-ins. At the same time, consumers priced out of new vehicles are driving strong used-car sales, causing dealers to buy aggressively at auctions and quickly absorb available inventory. Automakers have also maintained tighter production strategies rather than rebuilding large inventories, limiting the flow of surplus vehicles into wholesale markets. Industry uncertainty tied to tariffs, supply-chain volatility, uneven EV demand, and the US war in Iran are all contributing to the inventory headaches of the automobile industry.
• Car affordability has become a major drag on US auto sales heading into 2026, with 52% of dealers citing the economy as a barrier to sales in Q1 2026 - up from 45% a year prior. A Washington Post/ABC News poll found 74% of Americans consider buying a new car unaffordable, unsurprising given the average new car price was $49,191 in January 2026. Monthly payments are also at record highs, with Edmunds reporting the average financed new car payment reaching $772 in Q4 2025 and one in five buyers now committing to $1,000 or more per month, contributing to Cox's projection that February 2026 vehicle sales will fall 3.4% year-over-year. Some relief may be on the horizon through lower interest rates and more off-lease used vehicles entering the market, though luxury brands like Porsche (averaging $128,761) continue pushing overall price averages upward.

Industry size & Structure

The average auto and vehicle wholesale or auction company employs 33 workers and generates about $187 million annually.

• The auto and vehicle wholesaling and auction industry includes about 4,520 companies that employ 152,356 workers and generate $847 billion annually.
• The industry is concentrated; the top 50 companies account for almost 88% of industry revenue.
• Large vehicle auction providers include Manheim (Cox), ADESA, and ACV. R. Hollenshead Auto Sales and Wholesale, Inc., are the largest independent vehicle wholesalers.
• Auto auctions sell about 7.6 million cars annually.