A recently published report from Cox Automotive indicates a notable surge in used vehicle prices, highlighting a significant trend in the automotive market as demand increases. The Manheim Used Vehicle Value Index, which measures prices at U.S. wholesale auctions, registered a 4% rise in February compared to the same month last year, reaching a level of 212.3. Additionally, February’s index saw a month-over-month increase of 0.8% from January, marking its highest level since September 2023.
Jeremy Robb, Cox’s chief economist, noted that the early months of 2026 have reflected strong demand at Manheim auctions, as higher sales conversion rates suggest dealers are eager to bolster their inventories in anticipation of a strong spring selling season. “As we moved through February, we observed prices increasing unusually, particularly in the last half of the month,” Robb explained.
Factors contributing to this heightened buying activity include expectations of larger tax refunds for American consumers, which are expected to encourage purchases despite prevailing economic and geopolitical uncertainties. However, ongoing geopolitical tensions, particularly related to the situation in Iran, pose risks to the economic landscape, which could dampen consumer spending in the near term. Robb emphasized, “This may slow the acceleration we anticipate from tax refund season, especially with rising gas prices influencing purchasing behavior.”
Despite the current high prices for used vehicles, they remain lower than the record levels witnessed during the pandemic when a combination of strong demand and low inventory pushed prices to unprecedented heights. In January, the average listing price for a used car was reported at $25,533, a noticeable decline from over $28,000 in 2022. Cox projects that wholesale prices reflected in the Manheim index could end the year 2% higher than in December 2025, indicating a continued upward trend.
As car dealerships navigate the complexities of supply chain challenges and shifting consumer dynamics, the automotive market remains in a state of flux, with inventory levels influencing pricing strategies as well as consumer behavior heading into the spring season.
