Used vehicle prices jump ahead of spring selling season optimism

DETROIT — A closely watched barometer for used vehicle pricing jumped last month as dealers sped to increase inventories amid expectations of a robust spring selling season.

Cox Automotive on Friday reported its Manheim Used Vehicle Value Index — which tracks prices of used vehicles sold at its U.S. wholesale auctions — increased 4% in February compared with a year earlier, to a level of 212.3. That was up 0.8% from January and marks the index’s highest level since September 2023.

“Since the start of 2026, we’ve seen mostly solid demand at Manheim with higher sales conversion rates indicating an appetite from dealers to buy. As we progressed through February, we saw prices move higher than usual, especially in the back half of the month,” said Jeremy Robb, Cox chief economist.

Robb said the buying optimism was fueled by expected higher tax returns for American consumers, which offset broader economic and geopolitical concerns. However, the war in Iran introduces risks to the economy and may “put a damper on consumer appetite in the short run,” he said.

“This could slow the building pace we see on the back of tax refund season, particularly as gas prices rise. All in, the impact may be more acutely felt early in the month, with a pickup in demand building as we move through March,” Robb said.

Used vehicle prices remain high compared with historical levels but are off from record highs during the coronavirus pandemic, when resilient demand and low inventories inflated prices. Retail prices for consumers traditionally follow changes in 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 beginning of the year, Cox said it expected wholesale prices on its Manheim Used Vehicle Value Index to end this year 2% higher than December 2025.