Used vehicle prices at U.S. wholesale auctions rose sharply in March as dealers bid aggressively for limited inventory, signaling renewed inflationary pressure in the automotive market.
According to the latest Manheim Used Vehicle Value Index (MUVVI), average auction prices climbed 4.2% from February to $20,102, representing one of the largest monthly increases in recent years. On a year-over-year basis, wholesale used vehicle prices advanced 5.7%, marking the strongest annual gain since the pandemic-era surge in vehicle values.
Seasonally adjusted data showed wholesale prices increased 1.4% from the previous month, reflecting sustained strength in dealer demand. Manheim, the largest auto auction network in the United States and a division of Cox Automotive, said dealers remained willing to pay higher prices at auction amid confidence that increased wholesale costs can be passed on to retail buyers.
Auction supply continues to come largely from rental fleets, lease returns, repossessions, and corporate or government fleet sales. However, despite steady incoming inventory, demand has remained elevated, supported in part by stronger consumer tax refunds.
Through March 27, the average U.S. tax refund reached $3,521, up 11.1% from a year earlier, while the total amount refunded increased 13.6%. Cox Automotive said the larger refunds have helped buyers make bigger down payments and better absorb higher vehicle prices. The company linked the increase partly to provisions in the 2025 “One, Big, Beautiful Bill Act,” which was designed to stimulate economic activity ahead of midterm elections.
Used electric vehicles also posted strong momentum during the quarter. Off-lease EV volumes entering auctions reached a record 37,000 units sold in the first quarter, while retail sales of used EVs surpassed 100,000 units, the second-highest quarterly total ever recorded. Higher fuel prices have further encouraged buyers to consider used EVs as a more affordable alternative to new electric models.
Wholesale price movements at Manheim are widely viewed as a leading indicator for used vehicle retail pricing and broader inflation trends. Historically, increases in auction prices tend to feed into used vehicle consumer price inflation after a delay of several months.
Cox Automotive noted that the dramatic wholesale price spikes seen between mid-2020 and mid-2022 contributed to a 55% rise in used vehicle CPI inflation, while falling wholesale prices later helped moderate inflation through 2024.
With auction prices now rising again amid constrained supply and resilient demand, Cox Automotive warned that retail used vehicle prices may face renewed upward pressure in the coming months. While larger tax refunds may temporarily ease affordability concerns for consumers, the latest wholesale market trends suggest pricing challenges could persist throughout 2026.
