Used-Car Prices Are Back To 2023 Highs, And EVs Are Leading The Climb

New car prices are climbing, tariffs are costing Americans billions, a war in Iran is kicking up gas prices, and now, used-car pricing is headed skyward as well. A new report indicates that wholesale used-car prices were higher in March than they’ve been since the summer of 2023. That’s a stark change from the norm since March is typically a flat month across the industry. Here’s what that means for consumers.

First, let’s define the data. According to Cox Automotive, the Manheim Used Vehicle Value Index climbed to 215.3 in March, marking a 6.2 percent year-over-year increase and its highest level since mid-2023. Month over month, prices jumped 1.4 percent. Keep in mind that we’re talking about what dealers pay one another at wholesale auctions. The price consumers will pay at the end dealer will no doubt be higher.

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Cox data shows the average listed price of a used vehicle was $25,287 as of February, compared to more than $49,100 for a new vehicle, reinforcing the gap that continues to push buyers toward the used market.

Higher tax refunds helped kick-start demand early in the year, and buyers haven’t backed off. Sales conversion rates, a key indicator of how many auction listings actually sell, hit 68.2 percent, well above historical averages. That’s typically a sign that dealers are actively fighting over inventory.

Wholesale supply sits at just 24.5 days, which is still relatively tight. At the same time, retail inventory has dropped below 40 days, creating a squeeze that’s keeping prices elevated across the board. Lower new-vehicle sales are also reducing trade-in volumes, further tightening supply into the used market. Even rental fleet vehicles are up 7.5 percent year over year, adding pressure across multiple segments. We haven’t even mentioned EVs yet, so let’s dive into that data.

Electric Vehicle Values Climb Faster

Despite a wave of off-lease electric vehicles hitting the market, prices are actually rising faster than gas-powered cars. The EV index jumped 7.9 percent year over year and 3.7 percent since February. Rising gas prices, now over $4 per gallon, are clearly nudging buyers toward electrified options despite plenty of enthusiasts saying they’d never take that plunge. Luxury vehicles are leading the charge, while compact cars and trucks lag behind. Still, every segment is up compared to last year.

“As we move towards summer, we expect Manheim values to hold their ground with many more consumers yet to file their tax returns this year,” said Jeremy Robb, chief economist at Cox Automotive. “The end of March typically proves to be the ‘peak’ for price action at Manheim. The Middle East conflict could dampen the spirits of the U.S. consumer, but we just haven’t seen it yet – our data is showing resiliency in the economy.”

With many consumers still waiting on tax refunds, demand could stretch further into spring and even early summer. Cox Automotive still expects prices to stabilize later in the year, but for now, the market remains unusually resilient. The data provider has slightly raised its 2026 used vehicle sales forecast to 20.4 million units, though total sales are still expected to dip by about 1 percent compared to 2025.