A used car dealership is seen on May 27, 2021 in Annapolis, Maryland. A shortage of computer chips has nearly halted production at many automakers, leaving many car dealerships across the country with a shortage of new cars.
Jim Watson | AFP | Getty Images
Used car prices continue to rise as supply remains relatively tight, according to an auto industry barometer.
The Manheim Used Car Value Index, which tracks the prices of used cars sold at Cox Automotive’s U.S. wholesale auctions, rose 6.2% last month from a year ago. The company announced Tuesday that the index also reached its highest level since summer 2023.
Demand for used cars remains strong despite geopolitical tensions, rising gas prices and the Iran war, according to Mannheim auction data.
“We expected to see some impact from the Middle East conflict, which is still a possibility, but right now the data is clear: Used vehicle demand is healthy and inventory levels are relatively tight,” Jeremy Robb, chief economist at Cox Automotive, said in a release.
Cox reports that days of supply for used cars, a very important segment for dealers and consumers, fell below 40 days in March. This is the lowest point in 2026 and is lower than the previous year’s level.
Retail prices for consumers have traditionally tracked changes in wholesale prices, and Cox expects wholesale prices to rise at a historically stable rate of about 2% this year. The average list price of a used car was $25,287 in February, Cox said. This compares to new cars with an average price of over $49,100.
On Tuesday, Cox slightly revised its forecast for used cars this year upward from 20.3 million to 20.4 million, as demand for used cars so far this year has exceeded expectations. However, the increased demand will be offset by weaker sales in the second half of the year, with total used car sales expected to decline by around 1% in 2026 compared to 2025.
“Sturdy retail demand continues to be supported by new vehicle affordability pressures that are pushing consumers toward used vehicles, but lower new vehicle sales are suppressing trade-in volumes and limiting supply to the used vehicle market,” Cox said on Tuesday.
The majority of consumers in the United States buy used cars because they are more affordable than new cars. The U.S. new car market is expected to reach about 15.8 million units this year, Cox said.
