Used vehicle prices jump ahead of spring selling season optimism
A used car dealership is seen in Annapolis, Maryland, on May 27, 2021; New vehicles are running low at many car dealerships across the country as a shortage of computer chips has caused a near halt in production at many vehicle manufacturers.
Jim Watson | AFP | Getty Images
DETROIT — A closely watched barometer of used vehicle prices rose last month as dealers began adding to inventory amid expectations for a strong spring sales season.
Cox Automotive reported Friday: Manheim Second Hand Vehicle Value Index Tracking the prices of used vehicles sold at wholesale auctions in the U.S. – 212.3 in February, up 4% from the previous year. This marks the index’s highest level since September 2023, up 0.8% from January.
“Since the beginning of 2026, we have seen mostly strong demand at Manheim, with high sales conversion rates indicating dealers’ appetite for buying. As we progressed through February, we saw prices moving higher than normal, particularly in the back half of the month,” said Cox chief economist Jeremy Robb.
Robb said purchasing optimism stems from expected higher tax returns for American consumers, which offset broader economic and geopolitical concerns. But he said the war in Iran brought risks to the economy and “could constrain consumer appetite in the short term.”
“This could slow the rate of increase we’re seeing following tax refund season, particularly with rising gas prices. All in all, the impact could be felt more severely early in the month and see an increase in demand as we move into March,” Robb said.
Used vehicle prices remain high compared to historical levels but have fallen to record lows during the coronavirus pandemic, when resilient demand and low inventories have inflated prices. Retail prices for consumers traditionally follow changes in wholesale prices.
The average list price of a used vehicle in January was $25,533. This works out to over $28,000 in 2022. According to Cox.
At the beginning of the year, Cox said he expected wholesale prices on the Manheim Used Vehicle Value Index to be 2% higher this year than in December 2025.
