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US consumers who are in the market used cars It is facing the highest prices in nearly three years, according to a new report.
Wholesale prices for used vehicles reached their highest level since the summer of 2023 in March, with the Mannheim Used Vehicle Price Index rising 6.2% year on year to a reading of 215.3.
Data from Cox Automotive Brands and Manheim, America’s largest wholesale marketplace, showed that demand for used vehicles remains strong. Values rose 1.4% in the month of March, which the report said is well above long-term norms, and 2.3% higher than the beginning of 2026.
“As this year began, prices in Mannheim began to rise as dealers expected strong demand from above tax deduction to consumers,” said Jeremy Robb, chief economist at Cox Automotive.
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Mannheim data shows used car prices at the wholesale level reached their highest level in almost three years. (Bess Adler/Bloomberg via Getty Images)
“Sales conversion rates, a clear indicator of demand, were higher than in every week of 2025 but one in the first quarter, and vehicle price trends at auction show we are well ahead of last year and where we typically would be during the spring surge in wholesale markets,” Robb said.
“We thought we’d see some effect of middle east Conflict, and it still can happen. But right now, the data is clear: used vehicle demand is healthy and inventory levels are relatively low,” he said.
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Cox said it was unclear whether the Middle East conflict would impact U.S. consumer demand. (David Paul Morris/Bloomberg via Getty Images)
The Manheim report found that buyer activity was strengthening and competition for available inventory in the wholesale lane had increased, as the sales conversion rate increased to 68.2% in March. That’s 4.6 percentage points higher than the recent three-year average in March and 5.5 percentage points higher than the revised-high February rate of 62.7%.
used Electric Vehicle (EV) The first quarter also showed strength with strong pricing and activity for the quarter as values increased in line with seasonal increases.
It says that used EVs offer consumer power advantage over new EVs, while the flow of off-lease EVs entering wholesale channels is also increasing.
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The report found that demand for used EVs has remained strong given the affordability gap with new EVs. (David Paul Morris/Bloomberg via Getty Images)
Used vehicle retailing also showed momentum, with first-quarter sales rising nearly 2% compared to the same level a year earlier. Inventories also tightened, with the days supply metric falling below 40 in March, the lowest point this year and less than a year earlier.
Cox Automotive’s outlook for 2026 shows that used vehicles will have a stronger-than-expected start to the year, before total used vehicle sales will decline 1% year over year in the second half of 2026.
“As we head into summer, we expect Mannheim prices to hold their own and many more consumers have not yet filed their tax returns this year,” Robb said.
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“The end of March typically proves to be the ‘peak’ for price action in Mannheim. The Middle East conflict could dampen US consumer enthusiasm, but we have not seen this yet – our data is showing resilience in the economy,” Robb said.
