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
DETROIT — A barometer of used car prices rose sharply last month, drawing attention as dealers rushed to increase inventory on expectations for a strong spring sales season.
Cox Automotive reported Friday that the Manheim Used Car Value Index, which tracks the price of used cars sold at wholesale auctions in the United States, rose 4% in February from a year earlier to a level of 212.3. It rose 0.8% from January and was the highest level for the index since September 2023.
“Manheim has seen near-solid demand since the start of 2026, and rising sales conversion rates indicate dealer buying intent. As February progressed, prices rose above normal, especially in the second half of the month,” said Jeremy Robb, chief economist at Cox.
Robb said the expected increase in tax revenues for U.S. consumers is boosting the mood of purchasing optimism, offsetting broader economic and geopolitical concerns. But the Iran war poses risks to the economy and “could dampen consumer confidence in the short term,” he said.
“This could slow the pace of growth against the backdrop of tax refund season, especially as gasoline prices rise. Overall, the impact could be felt more markedly at the beginning of the month, with demand recovering through March,” Robb said.
Used car prices remain high compared to historical levels, but are far from the record highs reached during the coronavirus pandemic, when recovering demand and low inventory sent prices soaring. Retail prices for consumers traditionally track changes in wholesale prices.
The average listing price for a used car in January was $25,533. That will equate to more than $28,000 in 2022, Cox said.
Cox said at the beginning of the year that he expects wholesale prices in the Manheim Used Car Value Index to end this year 2% higher than in December 2025.
