Used car prices in the United States have reached their highest levels in nearly three years, driven by robust wholesale demand, according to a new report from Manheim, a Cox Automotive brand and the largest wholesale marketplace in the country [1]. The Manheim Used Vehicle Value Index climbed 6.2% year over year in March, reaching a reading of 215.3, marking the highest point since the summer of 2023 [1]. Values increased 1.4% in March, which is well above long-term norms, and are up 2.3% from the start of 2026 [1].
Jeremy Robb, chief economist at Cox Automotive, attributed the price surge to dealers anticipating strong demand from higher tax refunds to consumers, noting that prices at Manheim began rising as soon as the year started [1]. Sales conversion rates, a key indicator of demand, rose to 68.2% in March, which is 4.6 percentage points higher than the most recent three-year average for March and up 5.5 percentage points from February's revised rate of 62.7% [1]. Buyer activity has strengthened, with increased competition for available inventory in wholesale lanes, and inventory levels remain relatively tight [1].
Used electric vehicles (EVs) also showed strength in the first quarter, with firm pricing and increased activity as values rose alongside the seasonal increase [1]. The report highlighted that used EVs offer affordability advantages over new EVs, and the flow of off-lease EVs into wholesale channels is increasing [1]. Demand for used EVs has been strong due to the price differential with new EVs [1].
Retail used vehicle sales demonstrated momentum, with first quarter sales up about 2% compared to the same period last year. Inventory tightened further, as the days' supply metric dropped below 40 in March, the lowest point this year and down from a year ago [1]. Cox Automotive's outlook for 2026 anticipates used vehicles continuing a stronger-than-expected start to the year, but expects a softer second half with total used vehicle sales declining 1% year over year [1]. Robb expects Manheim values to hold their ground as more consumers file their tax returns heading into summer [1].
CONCLUSION
The surge in used car prices reflects strong wholesale and retail demand, tight inventory, and increased buyer activity, with used EVs also showing notable strength. While the market is expected to remain robust in the near term, Cox Automotive forecasts a softer second half of 2026 with a slight decline in total used vehicle sales. Overall, the current market conditions signal high impact and positive sentiment for used vehicle sellers.