Used-car prices moved higher in March as strong consumer demand and tightening inventory conditions continued to support the wholesale market, according to new data from Cox Automotive. The increase signals sustained resilience in the used-vehicle sector, even as dealers face rising acquisition costs.
Cox Automotive’s Manheim Used Vehicle Value Index (MUVVI) climbed to 215.3 in March, marking a 6.2% year-over-year increase and its highest level since summer 2023. The gain reflects stronger pricing conditions across the wholesale market as demand continues to outpace available supply in key segments.
The Manheim Market Report (MMR) showed that three-year-old vehicle prices rose 2.2% during the month, slightly above typical seasonal patterns. MMR retention averaged 100.5%, unchanged from a year earlier but up 0.2 percentage points from February, aligning with expected seasonal trends. Meanwhile, sales conversion rates reached 68.2%, significantly above both the three-year March average and February’s 62.7%, indicating stronger buyer competition at auction.
“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,” said Jeremy Robb, chief economist at Cox Automotive. He added that while geopolitical tensions could eventually affect sentiment, current data shows “used-vehicle demand is healthy, and inventory levels are relatively tight.”
Retail conditions also strengthened in the first quarter of 2026 as affordability pressures in the new-vehicle market pushed more buyers toward used cars. Cox Automotive reported used-vehicle retail sales were up about 2% year over year, supported by seasonal tax refund activity. At the same time, retail inventory tightened, with days’ supply falling below 40 in March—its lowest level so far in 2026.
Retail pricing reflected these conditions, with list prices for popular three-year-old vehicles running about 2% higher than a year earlier and trending above normal seasonal levels. This indicates that stronger wholesale pricing is filtering through to retail markets, reinforcing overall price stability across the used-car segment.
Electric vehicles also showed notable momentum, with wholesale EV volume at Manheim reaching a record in the first quarter at nearly 37,000 units sold. Early estimates suggest more than 100,000 used EVs were sold at retail during the same period, highlighting continued growth in EV adoption in the secondary market.
Looking ahead, Cox Automotive maintained its overall 2026 outlook, expecting a softer second half to balance a stronger-than-expected start in wholesale activity. Total used-vehicle sales are projected to decline 1% year over year, although the retail forecast was revised upward to 20.4 million units. Wholesale pricing is expected to follow typical seasonal patterns, with the MUVVI projected to rise about 2% by year-end.
Cox Automotive’s Jeremy Robb noted that price strength typically peaks around late March before stabilizing into the summer months, with tax refunds continuing to support consumer activity. While geopolitical risks remain a potential headwind, current market indicators suggest continued resilience in used-vehicle demand.
Overall, the used-car market remains a relative bright spot for dealers, supported by strong demand and limited supply. However, Cox cautioned that rising wholesale values could compress margins if dealers are not disciplined in sourcing and inventory management as market conditions evolve.
