Used car prices rise to highest point since summer 2023

Prices of used vehicles are continuing to rise amid relatively tight supplies, according to a closely watched automotive industry barometer.

Cox Automotive’s Manheim Used Vehicle Value Index — which tracks prices of used vehicles sold at its U.S. wholesale auctions — increased 6.2% last month compared with a year earlier. The index also hit its highest level since the summer of 2023, the company said Tuesday.

Demand for used vehicles remains strong despite geopolitical tensions, high gas prices and the Iran war, according to auction data from Manheim.

“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,” Cox Automotive’s chief economist, Jeremy Robb, said in a release.

Cox reports days’ supply for used vehicles — a highly important segment for dealers and consumers — fell below 40 days in March. That marks the lowest point in 2026 and is down from year-ago levels.

Retail prices for consumers traditionally follow changes in wholesale prices, which Cox forecasts to rise at a historically stable rate of about 2% this year. The average listed price of a used vehicle was $25,287 as of February, according to Cox. That compares with new vehicles at an average price of more than $49,100.

The stronger-than-expected demand for used vehicles so far this year caused Cox on Tuesday to slightly increase its used vehicle forecast for the year to 20.4 million, up from 20.3 million. But the higher demand is projected to be offset by softer sales during the second half of the year, with total used vehicle sales for all of 2026 expected to decline by about 1% compared with 2025.

“Stronger retail demand continues to be supported by new vehicle affordability pressures that are pushing consumers toward used vehicles, while lower new-vehicle sales are constraining trade-in volumes and limiting supply into the used market,” Cox said Tuesday.

The majority of U.S. consumers purchase used vehicles since they’re more affordable than new models. The new U.S. vehicle market is expected to hit about 15.8 million vehicles this year, according to Cox.