Used car prices hit highest levels since 2023 and could push higher as inventory shrinks
Used car prices hit highest levels since 2023 and could push higher as inventory shrinks
Pras SubramanianTue, April 7, 2026 at 6:17 PM UTC
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Used car prices jumped sharply in March amid the tax refund season and affordability issues, such as high new car prices, rising gas costs, and rising interest rates, which brought buyers to used-car lots.
The Manheim Used Vehicle Value Index (MUVVI) rose to 215.3 in March, up 6.2% compared to a year ago and 1.4% higher than February. On an unadjusted basis, prices were up 5.7% year over year and climbed 4.2% from February, also running well ahead of the historical March average gain of 3.4%.
The 6.2% jump sent used-car prices to their highest level in nearly three years, with March’s increase the largest since the 3.2% gain in May 2023.
The MUVVI tracks prices paid at wholesale auctions, typically where dealers and auto professionals buy and sell cars for inventory.
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Manheim's MUVVI index jumped 6.2% in March, hitting levels not seen since the summer of 2023 (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," Jeremy Robb, chief economist at Cox Automotive, said in the report. "Sales conversion rates, a clear sign of demand, were higher than in 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."
Cox said supply is notably tight. Wholesale days' supply fell to 24.5 days at the end of March, down 2.5 days from February. The dynamic traces back to the auto industry's supply chain crisis in 2021 and 2022, when fewer new vehicles were sold and leased. Those vehicles — now completing their three- and four-year lease terms — aren't returning to the used market in large numbers.
"Right now, the data is clear: used-vehicle demand is healthy, and inventory levels are relatively tight,” Cox wrote.
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In an aerial view, a sign is posted on the exterior of a Carvana car vending machine on July 19, 2023, in Daly City, Calif. (Justin Sullivan/Getty Images) (Justin Sullivan via Getty Images)
Shares of used-car dealers like Carvana (CVNA), CarMax (KMX), and AutoNation (AN) may get a boost this spring and summer.
Across the segment, luxury and midsize cars led the market with year-over-year price increases of 5.0% and 4.1%, respectively, while compact cars posted the weakest gains at 3.2%.
Electric vehicles were the standout of the month, with the EV Index surging 7.9% year over year and 3.7% from February. EV weighting hit a record 3.9% of the MUVVI data in March, and Manheim set a quarterly record for wholesale EV volume in Q1.
Robb noted that dealers appear to be stocking up on used EVs as gas prices have climbed above $4.00 a gallon. MSRPs of new vehicles, regardless of powertrain, crept closer to $50,000, highlighting the affordability crunch affecting many US consumers and leading to higher consideration of used vehicles.
Seasonality usually means March is the strongest month, but Cox believes the buying could continue.
"The end of March typically proves to be the 'peak' for price action at Manheim, but the way this tax-refund season is unfolding, it could continue for a bit longer," Cox said.
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Pras Subramanian is the Lead Transportation Reporter for Yahoo Finance. You can follow him on X and on Instagram.
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