Used Car Prices Climb to Highest Point Since 2023

Daily Car

13/04/2026

Recent industry data reveals a significant increase in the cost of used vehicles, with wholesale prices in March reaching their highest point since the summer of 2023. This trend affects nearly all vehicle types, including a notable surge in the value of used electric vehicles (EVs).

Understanding the Price Surge

The Manheim Used Vehicle Value Index, a key measure of prices dealers pay at auction, rose to 215.3 in March. This represents a 6.2 percent increase compared to the same time last year. For the average buyer, this means the final price at the dealership is also on the rise. As of February, the average listed price for a used vehicle was approximately $25,287, creating a substantial gap when compared to the average new vehicle price of over $49,100.

The Forces of Supply and Demand

The price increase is a direct result of strong demand meeting a limited supply. A key indicator, the sales conversion rate at auctions, has hit 68.2 percent. This figure shows that dealers are actively competing for a smaller pool of available cars, buying them up quickly. This high demand is partly fueled by consumers receiving their tax refunds.

On the supply side, inventory is tight. The wholesale market has just a 24.5-day supply of vehicles, which is below normal levels. This shortage is worsened by fewer new-car sales, which reduces the number of trade-ins entering the used market. Even the supply of former rental cars is tighter than usual, adding to the pressure on prices.

The Electric Vehicle Factor

Despite more off-lease models entering the market, the prices for used electric vehicles are climbing faster than their gasoline-powered counterparts. The EV value index saw a 7.9 percent year-over-year jump. A primary reason for this is the rising cost of gasoline, which is now over $4 per gallon in many areas. This is pushing more buyers to consider an electric option for their next vehicle. While all segments are seeing price growth, luxury and electric models are leading the way.

Industry analysts expect these elevated prices to continue through the spring, with potential stabilization later in the year. For now, the market remains unusually strong, and buyers should anticipate continued high prices for used vehicles.

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