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American shoppers who’re out there for used vehicles are dealing with the best costs in practically three years, in keeping with a brand new report.
Wholesale costs for used autos rose to their highest degree for the reason that summer time of 2023 in March, with the Manheim Used Automobile Worth Index rising 6.2% yr over yr to a studying of 215.3.
Knowledge from Manheim, a Cox Automotive model and the biggest wholesale market within the U.S., discovered that demand for used autos stays sturdy. Values rose 1.4% within the month of March, which the report famous is effectively above long-term norms, and are up 2.3% from the beginning of 2026.
“As quickly as this yr started, costs at Manheim began transferring greater as sellers anticipated sturdy demand from greater tax refunds to shoppers,” mentioned Jeremy Robb, chief economist at Cox Automotive.
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Used automotive costs on the wholesale degree rose to their highest degree in practically three years, the Manheim information confirmed. (Bess Adler/Bloomberg by way of Getty Photographs)
“Gross sales conversion charges, a transparent signal of demand, have been greater towards 2025 for each week however one in Q1, and car worth tendencies at public sale present we’re effectively forward of final yr and the place we might usually be throughout a spring bounce within the wholesale markets,” Robb added.
“We thought we might see some impression from the Center East battle, and which will nonetheless occur. However proper now, the info is evident: used-vehicle demand is wholesome and stock ranges are comparatively tight,” he added.
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Cox mentioned it is unclear whether or not the Center East battle will impression U.S. client demand. (David Paul Morris/Bloomberg by way of Getty Photographs)
The Manheim report discovered that purchaser exercise was strengthening and there was elevated competitors for the accessible stock within the wholesale lanes, because the gross sales conversion charge rose to 68.2% in March. That is 4.6 share factors greater than the latest three-year common for March and is up 5.5 share factors from the revised-higher February charge of 62.7%.
Used electrical autos (EVs) additionally confirmed power within the first quarter with agency pricing and exercise for the quarter as values rose alongside the seasonal improve.
It famous that used EVs supply shoppers affordability benefits over new EVs, whereas there’s additionally an rising circulation of off-lease EVs coming into wholesale channels.
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Demand for used EVs has been sturdy given the affordability differential with new EVs, the report discovered. (David Paul Morris/Bloomberg by way of Getty Photographs)
Retail used car gross sales additionally confirmed momentum, with first quarter gross sales up about 2% in contrast with the identical degree a yr in the past. Stock additionally tightened, with the times’ provide metric declining beneath 40 in March, which was the bottom level this yr and down from a yr in the past.
Cox Automotive’s outlook for 2026 sees used autos persevering with a stronger-than-expected begin to the yr, earlier than being offset by a softer second half of 2026 with whole used car gross sales declining 1% yr over yr.
“As we transfer in the direction of summer time, we anticipate Manheim values to carry their floor with many extra shoppers but to file their tax returns this yr,” Robb mentioned.
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“The top of March sometimes proves to be the ‘peak’ for worth motion at Manheim. The Center East battle may dampen the spirits of the U.S. client, however we simply have not seen it but – our information is exhibiting resiliency within the economic system,” Robb mentioned.
