Wholesale vehicle prices climb in March as tight supply and strong demand push auction values higher across most segments.
By yourNEWS Media Newsroom
Wholesale prices for used vehicles rose again in March, reaching their highest levels since mid-2023 as dealers competed for limited inventory, according to new data from Cox Automotive.
The latest Manheim Used Vehicle Value Index, a benchmark tracking auction prices adjusted for vehicle mix, mileage, and seasonal trends, increased to 215.3 in March, reflecting a 6.2 percent rise from a year earlier and a 1.4 percent gain from February, according to a Cox Automotive report.
On a non-seasonally adjusted basis, the average wholesale price climbed to $20,102, marking the highest level recorded since the summer of 2023.
Jeremy Robb, chief economist at Cox Automotive, said the upward trend began early in the year as dealers anticipated stronger consumer demand, partly linked to larger tax refunds. He noted that auction conversion rates—a measure of demand strength—remained elevated compared to 2025 levels for nearly the entire first quarter.
“We thought we’d see some impact from the Middle East conflict, and that may still happen,” Robb said. “But right now, the data is clear: used-vehicle demand is healthy and inventory levels are relatively tight.”
Price increases were observed across all major vehicle categories, with luxury and midsize cars showing the strongest gains. Compact vehicles and trucks also rose year over year but at a slower pace.
Electric vehicles saw particularly strong demand. Cox reported its EV index rose 7.9 percent compared with a year ago and 3.7 percent from the prior month, exceeding gains in the broader market, which increased 6.0 percent year over year and 1.8 percent month over month.
“We expect dealers are anticipating increased interest for used EVs as gas prices have now risen above $4.00 per gallon,” Robb said. “Dealers are stocking up on EV inventory.”
Despite the recent gains, wholesale used-vehicle prices remain below the peak reached during the supply shortages of 2022, when disruptions in production and semiconductor availability pushed average prices to a record $22,902 in May of that year.
Even so, pricing remains elevated compared with pre-pandemic levels, reflecting ongoing supply constraints and sustained consumer demand.
Market expectations surrounding potential future price increases for new vehicles are also influencing behavior. Some buyers are entering the market earlier to avoid higher costs, while dealers are bidding more aggressively for trade-ins in anticipation of continued tight supply and firm pricing conditions.