Used car prices jumped sharply in March amid the tax refund season and affordability points, such as excessive new car prices, rising gasoline prices, and rising rates of interest, which introduced patrons to used-car tons.
The Manheim Used Vehicle Value Index (MUVVI) rose to 215.3 in March, up 6.2% in comparison with a 12 months in the past and 1.4% higher than February. On an unadjusted foundation, prices had been up 5.7% 12 months over 12 months and climbed 4.2% from February, additionally working properly forward of the historic March common acquire of three.4%.
The 6.2% leap despatched used-car prices to their highest stage in almost three years, with March’s improve the biggest since the three.2% acquire in May 2023.
The MUVVI tracks prices paid at wholesale auctions, usually the place sellers and auto professionals purchase and promote automobiles for inventory.
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“As soon as this year began, prices at Manheim started moving higher as dealers anticipated strong demand from higher tax refunds to consumers,” Jeremy Robb, chief economist at Cox Automotive, mentioned within the report. “Sales conversion rates, a clear sign of demand, were higher than in 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.”
Cox mentioned provide is notably tight. Wholesale days’ provide fell to 24.5 days on the finish of March, down 2.5 days from February. The dynamic traces again to the auto trade’s provide chain disaster in 2021 and 2022, when fewer new autos had been bought and leased. Those autos — now finishing their three- and four-year lease phrases — aren’t returning to the used market in giant numbers.
“Right now, the data is clear: used-vehicle demand is healthy, and inventory levels are relatively tight,” Cox wrote.
Shares of used-car sellers like Carvana (CVNA), CarMax (KMX), and AutoNation (AN) might get a lift this spring and summer season.
Across the segment, luxury and midsize cars led the market with year-over-year price increases of 5.0% and 4.1%, respectively, while compact cars posted the weakest gains at 3.2%.
Electric vehicles were the standout of the month, with the EV Index surging 7.9% year over year and 3.7% from February. EV weighting hit a record 3.9% of the MUVVI data in March, and Manheim set a quarterly record for wholesale EV volume in Q1.
Robb famous that sellers seem like stocking up on used EVs as gasoline prices have climbed above $4.00 a gallon. MSRPs of recent autos, no matter powertrain, crept nearer to $50,000, highlighting the affordability crunch affecting many US customers and resulting in higher consideration of used autos.
