A used automobile dealership is seen in Annapolis, Maryland on Could 27, 2021, as many automobile dealerships throughout the nation are operating low on new automobiles as a pc chip scarcity has triggered manufacturing at many automobile manufactures to almost cease.
Jim Watson | AFP | Getty Pictures
DETROIT — A intently watched barometer for used automobile pricing jumped final month as sellers sped to extend inventories amid expectations of a strong spring promoting season.
Cox Automotive on Friday reported its Manheim Used Car Worth Index — which tracks costs of used automobiles bought at its U.S. wholesale auctions — elevated 4% in February in contrast with a 12 months earlier, to a stage of 212.3. That was up 0.8% from January and marks the index’s highest stage since September 2023.
“Because the begin of 2026, we have seen principally stable demand at Manheim with greater gross sales conversion charges indicating an urge for food from sellers to purchase. As we progressed by way of February, we noticed costs transfer greater than traditional, particularly within the again half of the month,” mentioned Jeremy Robb, Cox chief economist.
Robb mentioned the shopping for optimism was fueled by anticipated greater tax returns for American shoppers, which offset broader financial and geopolitical issues. Nevertheless, the battle in Iran introduces dangers to the economic system and should “put a damper on client urge for food within the quick run,” he mentioned.
“This might gradual the constructing tempo we see on the again of tax refund season, notably as fuel costs rise. All in, the impression could also be extra acutely felt early within the month, with a pickup in demand constructing as we transfer by way of March,” Robb mentioned.
Used automobile costs stay excessive in contrast with historic ranges however are off from document highs throughout the coronavirus pandemic, when resilient demand and low inventories inflated costs. Retail costs for shoppers historically observe adjustments in wholesale costs.
The typical itemizing worth for a used automobile in January was $25,533. That compares to greater than $28,000 in 2022, based on Cox.
At first of the 12 months, Cox mentioned it anticipated wholesale costs on its Manheim Used Car Worth Index to finish this 12 months 2% greater than December 2025.
