Used Car Prices Hit Highest Level In Almost Three Years

Used car prices in the United States have reached their highest level in nearly three years, with the Manheim Used Vehicle Value Index (MUVVI) climbing 6.2% year over year to a reading of 215.3 in March. This sharp rise means American consumers are paying more for used vehicles than at any time since the summer of 2023, according to recent data released by Cox Automotive.

Dealers have seen strong demand as the year began, partly due to higher tax refunds and rising gas prices, which have pushed more buyers into the used car market. According to Jeremy Robb, chief economist at Cox Automotive, "as soon as this year began, prices at Manheim started moving higher as dealers anticipated strong demand from higher tax refunds to consumers." He added that "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."

Wholesale values rose 1.4% in March alone—a pace well above typical seasonal trends—and are up 2.3% since the start of 2026. Demand is especially strong for luxury and midsize cars, while compact cars and trucks have seen weaker price growth. The surge has also been supported by tightening inventory, with the days' supply of used vehicles dropping below 40 in March, the lowest so far this year.

Used electric vehicles (EVs) are also seeing record activity. As more off-lease EVs become available, wholesale EV volume set a first-quarter record. The MUVVI data shows EVs now make up a record 3.9% of the index, and their values are rising alongside gasoline prices, which have climbed above $4 per gallon.

Looking ahead, Cox Automotive predicts prices will remain elevated into the summer before potentially cooling later in 2026. The company also acknowledged that global events, such as the ongoing conflict in the Middle East, could still impact the market, but so far, used car demand and pricing have shown resilience.