Used vehicle prices at U.S. wholesale auto auctions posted a sharp increase in March as dealers competed for limited inventory, raising concerns that renewed inflationary pressure may be building in the automotive market.
The latest Manheim Used Vehicle Value Index (MUVVI) from Cox Automotive showed that average wholesale auction prices rose 4.2% month over month to $20,102, marking one of the strongest monthly gains in recent years. On a year-over-year basis, prices were up 5.7%, the largest annual increase since the pandemic-era spike in vehicle values.
After adjusting for seasonal factors, wholesale prices still increased 1.4% compared with the previous month, underscoring sustained demand from dealers. Manheim, the largest auto auction network in the United States, said buyers continued to accept higher acquisition costs, reflecting confidence that increased wholesale prices can be passed through to retail consumers.
Auction supply continues to be driven by rental fleet turnover, off-lease returns, repossessions, and government or corporate fleet sales. Despite this steady flow of inventory, demand has remained strong, supported in part by higher consumer tax refunds that have improved purchasing power in the retail market.
Through March 27, the average U.S. tax refund reached $3,521, up 11.1% from a year earlier, while total refund volume rose 13.6%. Cox Automotive noted that larger refunds have helped buyers increase down payments and absorb higher vehicle prices more easily, with part of the increase linked to provisions in the 2025 “One, Big, Beautiful Bill Act,” which aimed to stimulate economic activity ahead of upcoming elections.
The used electric vehicle segment also showed notable momentum during the quarter. Off-lease EVs entering auctions reached a record 37,000 units sold in the first quarter, while retail sales of used EVs exceeded 100,000 units, the second-highest quarterly level on record. Rising fuel costs have further encouraged consumers to consider used EVs as a more affordable alternative to new electric models.
Manheim pricing trends are closely watched as a leading indicator of retail used-vehicle prices and broader inflation dynamics. Historically, increases in wholesale auction values tend to filter into consumer prices after a lag of several months, influencing overall used-car inflation.
Cox Automotive added that the sharp wholesale price increases seen between 2020 and 2022 contributed to a 55% surge in used-vehicle consumer price inflation, while subsequent declines helped ease inflationary pressures through 2024. With prices now climbing again amid constrained supply and resilient demand, the company warned that retail used vehicle prices could face renewed upward pressure in the months ahead, even as tax refunds provide temporary support for affordability.
