Used-vehicle prices increased in March as robust consumer demand and tightening inventory conditions continued to support the wholesale market, according to new data from Cox Automotive. The trend highlights sustained strength in the used-car sector even as dealers contend with rising acquisition costs.
Cox Automotive’s Manheim Used Vehicle Value Index (MUVVI) rose to 215.3 in March, up 6.2% year over year and reaching its highest level since summer 2023. The increase reflects stronger wholesale pricing conditions, driven by demand that continues to outpace available supply in several key vehicle segments.
Additional indicators from the Manheim Market Report (MMR) reinforced the upward pricing trend. Prices for three-year-old vehicles increased 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, while sales conversion rates climbed to 68.2%, significantly higher than both the three-year March average and February’s 62.7%, signaling intensified 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 weigh on sentiment, current conditions indicate that “used-vehicle demand is healthy, and inventory levels are relatively tight.”
Retail market conditions also strengthened in early 2026 as affordability pressures in the new-vehicle segment pushed more consumers toward used cars. Cox Automotive reported that used-vehicle retail sales rose about 2% year over year, supported in part by seasonal tax refund activity. At the same time, inventory levels tightened further, with days’ supply falling below 40 in March, marking the lowest level so far this year.
Retail pricing reflected the same dynamics, with list prices for popular three-year-old vehicles approximately 2% higher than a year earlier and trending above normal seasonal expectations. The data suggests that stronger wholesale pricing is continuing to filter into retail markets, reinforcing overall price stability across the used-vehicle segment.
Electric vehicles showed particularly strong momentum in the wholesale channel. Manheim recorded nearly 37,000 used EVs sold in the first quarter, a record high for the platform. Early estimates also suggest that more than 100,000 used EVs were sold at retail during the same period, underscoring continued growth in secondary-market EV adoption.
Looking ahead, Cox Automotive maintained its full-year 2026 outlook, anticipating a softer second half to offset a stronger-than-expected start in wholesale activity. Total used-vehicle sales are projected to decline 1% year over year, while the retail forecast was revised upward to 20.4 million units. Wholesale prices are expected to follow seasonal patterns, with the MUVVI projected to rise about 2% by year-end.
Cox Automotive noted that used-vehicle prices typically peak in late March before stabilizing through the summer months, with tax refunds continuing to support consumer demand. While geopolitical risks remain a potential headwind, current indicators suggest the market continues to show resilience, supported by strong demand and constrained supply.
