A used car dealership is seen in Annapolis, Maryland, May 27, 2021, as many car dealerships across the country are running out of new vehicles as a shortage of computer chips has nearly shut down production at many vehicle manufacturers.
Jim Watson | AFP | Getty Images
DETROIT — A closely watched barometer of used-vehicle prices jumped last month as dealers raced to increase inventories amid expectations of a strong spring sales season.
Cox Automotive announced Friday that its Manheim Used Vehicle Value Index – which tracks prices of used vehicles sold at its U.S. wholesale auctions – rose 4% in February from a year earlier, to a level of 212.3. This is an increase of 0.8% from January and is the highest level of the index since September 2023.
“Since the start of 2026, we’ve seen pretty solid demand in Manheim, with higher sales conversion rates, indicating a buying appetite from dealers. As we progressed through February, we saw prices rise more than usual, particularly in the second half of the month,” said Jeremy Robb, Cox chief economist.
Robb said buyers’ optimism was fueled by expected higher tax returns for U.S. consumers, which offset broader economic and geopolitical concerns. However, the war in Iran introduces risks to the economy and could “curb consumer appetite in the short term”, he said.
“This could slow the pace of construction we see following the tax refund season, particularly as gas prices rise. Overall, the impact could be felt more intensely early in the month, with demand picking up as we move into March,” Robb said.
Used vehicle prices remain elevated by historic levels, but are far from the record levels reached during the coronavirus pandemic, when resilient demand and low inventory boosted prices. Retail prices for consumers traditionally follow the movement of wholesale prices.
The average listing price for a used vehicle in January was $25,533. That compares to more than $28,000 in 2022, according to Cox.
At the start of the year, Cox said it expected wholesale prices for its Manheim Used Vehicle Value Index to finish this year 2% higher than in December 2025.