Used car prices hit their highest level in nearly – Business News
American shoppers who’re in the market for used vehicles are dealing with the highest prices in nearly three years, in accordance with a new report.
Wholesale prices for used automobiles rose to their highest level for the reason that summer season of 2023 in March, with the Manheim Used Vehicle Value Index rising 6.2% 12 months over 12 months to a studying of 215.3.
Data from Manheim, a Cox Automotive model and the most important wholesale market in the US, discovered that demand for used automobiles stays robust.
Values rose 1.4% in the month of March, which the report famous is effectively above long-term norms, and are up 2.3% from the beginning of 2026.
“As soon as this year began, prices at Manheim started moving higher as dealers anticipated strong demand from higher tax refunds to consumers,” mentioned Jeremy Robb, chief economist at Cox Automotive.
“Sales conversion rates, a clear sign of demand, were higher against 2025 for every week but one in Q1, and vehicle value trends at auction show we are well ahead of last year and where we would normally be during a spring bounce in the wholesale markets,” Robb added.
“We thought we’d see some impact from the Middle East conflict, and that may still happen. But right now, the data is clear: used-vehicle demand is healthy and inventory levels are relatively tight,” he added.
The Manheim report discovered that purchaser exercise was strengthening and there was elevated competitors for the obtainable stock in the wholesale lanes, because the gross sales conversion price rose to 68.2% in March.
That’s 4.6 share factors greater than the newest three-year average for March and is up 5.5 share factors from the revised-higher February price of 62.7%.
American shoppers who’re on the lookout for used vehicles on the market must pay high prices that haven’t been seen in nearly 3 years. Getty Images
Used electric automobiles (EVs) additionally confirmed energy in the primary quarter with firm pricing and exercise for the quarter as values rose alongside the seasonal increase.
It famous that used EVs offer shoppers affordability benefits over new EVs, whereas there’s additionally an rising move of off-lease EVs getting into wholesale channels.
Retail used vehicle gross sales additionally confirmed momentum, with first quarter gross sales up about 2% in contrast with the identical level a 12 months in the past.
Inventory additionally tightened, with the times’ provide metric declining under 40 in March, which was the bottom level this 12 months and down from a 12 months in the past.
Data from the Manheim Used Vehicle Value Index reveals a 6.2% 12 months to 12 months increase in used automobiles, making this 12 months the costliest to buy used vehicles for the reason that summer season of 2023. Getty Images
Cox Automotive’s outlook for 2026 sees used automobiles persevering with a stronger-than-expected begin to the 12 months, earlier than being offset by a softer second half of 2026 with whole used vehicle gross sales declining 1% 12 months over 12 months.
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“As we move towards summer, we expect Manheim values to hold their ground with many more consumers yet to file their tax returns this year,” Robb mentioned.
“The end of March typically proves to be the ‘peak’ for price action at Manheim. The Middle East conflict could dampen the spirits of the U.S. consumer, but we just haven’t seen it yet – our data is showing resiliency in the economy,” Robb mentioned.
