Used Car Prices Hit Near Three-Year High
According to a recent report, American consumers are facing a significant rise in used car prices, now at the highest level seen in nearly three years. In March, the Mannheim Used Car Value Index reported a year-over-year increase of 6.2%, reaching 215.3.
The data from Manheim, which is part of Cox Automotive, indicates that demand for used cars remains robust. While the value climbed 1.4% in March, it’s still notably above long-term averages, having risen 2.3% since early 2026.
“As soon as the year started, we saw Manheim prices increasing as dealers expected strong consumer demand driven by tax refunds,” noted Jeremy Robb, chief economist at Cox Automotive.
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Robb also mentioned that sales conversion rates—a measure of demand—were stronger this year compared to 2025, improving in nearly every week of the first quarter. Trends in auction vehicle values are notably higher than last year, suggesting we are experiencing the typical spring rebound in the wholesale market.
“Conflicts in the Middle East have happened and could continue. Yet, the data clearly shows healthy demand for used cars and relatively tight inventory levels,” he added.
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Buyer activity has increased, leading to more competition for available inventory. March saw a sales conversion rate of 68.2%, which is 4.6 points above the average of the previous three years in March and higher than February’s revised 62.7%.
Interestingly, the first quarter also exhibited strength in the used electric vehicle (EV) market. Seasonal increases contributed to solid pricing and activity, as there are more lease-off EVs entering the wholesale market, making them more affordable than new models.
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Demand for used EVs continues to be strong, especially when considering the price contrast with new cars. Retail sales of used cars also showed a slight increase, up about 2% year-over-year. Inventory levels are tight, with the average supply in March dropping below 40 days—the lowest of the year and even down from last year.
Cox Automotive’s forecast for 2026 suggests that the market for used cars will start the year better than anticipated, although they expect some weakening in the latter half of the year, leading to an overall 1% decline in total used car sales compared to last year.
“As we approach summer, we expect Manheim values to stay strong as many consumers have yet to submit their tax returns this year,” Robb said.
He added, “Typically, late March tends to be a peak for price changes in Mannheim. While the Middle East situation may affect consumer sentiment, our data has not shown any negative impacts yet, indicating the economy’s resilience.”
