Used vehicle prices in the United States have climbed to their highest level in nearly three years, underscoring persistent supply constraints and resilient consumer demand across the automotive market.
According to Cox Automotive, the Manheim Used Vehicle Value Index—a key indicator tracking wholesale auction prices—rose 6.2 percent in March from a year earlier. The increase pushed the index to its highest point since mid-2023, highlighting a sustained upward trend in used car valuations.
The price gains reflect a combination of demand-side momentum and limited supply. Dealers entered the year expecting stronger sales, supported in part by larger tax refunds that helped release pent-up demand. This contributed to a solid performance in the first quarter, with buyers returning to the market despite broader economic uncertainties.
Jeremy Robb, chief economist at Cox Automotive, noted that while used vehicle prices typically peak toward the end of March due to seasonal trends, current market dynamics suggest the momentum could extend beyond the usual cycle. He added that external risks, including geopolitical tensions in the Middle East, may still affect consumer sentiment, though demand has remained stable so far.
A key driver behind rising prices is a sharp decline in available inventory. Retail used vehicle stock has dropped below two million units, marking the lowest level recorded in Cox Automotive’s data. The shortage is particularly pronounced for vehicles around three years old—a segment often considered a sweet spot for value—which are now priced roughly 2 percent higher than a year ago and above typical seasonal norms.
At the same time, affordability challenges in the new car market are pushing more consumers toward used vehicles. New car sales have fallen by about 5 percent so far this year, while used vehicle sales have edged up by approximately 1 percent. This shift is further tightening supply, as fewer new car purchases result in a reduced flow of trade-ins into the used market.
Longer-term structural factors continue to weigh on supply. Automakers produced an estimated 8 million fewer vehicles than usual during 2021 and 2022 due to pandemic-related disruptions. That shortfall is still reverberating through the market, limiting the availability of late-model used vehicles, according to industry estimates cited by Kelley Blue Book.
Despite the recent increases, used vehicle prices remain below their peak levels. The average listing price stood at $25,287 in February, slightly higher than a year earlier but still below the 2022 high of $27,603, Cox Automotive data shows.
Financing trends further illustrate the pressure on affordability. Edmunds reported that the average amount financed for a used vehicle reached $29,314 in the first quarter of 2026, up around $1,000 from a year earlier and well above the pre-pandemic average of approximately $22,200.
Overall, the U.S. used car market remains constrained, with demand continuing to outpace supply. While some seasonal easing may occur later in the year, analysts expect elevated prices to persist in the near term as inventory shortages and shifting consumer preferences continue to shape the market.
