A used automobile dealership is seen in Annapolis, Maryland on Might 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 car manufactures to just about cease.
Jim Watson | AFP | Getty Photos
Costs of used automobiles are persevering with to rise amid comparatively tight provides, based on a carefully watched automotive business barometer.
Cox Automotive’s Manheim Used Automobile Worth Index — which tracks costs of used automobiles offered at its U.S. wholesale auctions — elevated 6.2% final month in contrast with a 12 months earlier. The index additionally hit its highest degree because the summer season of 2023, the corporate mentioned Tuesday.
Demand for used automobiles stays sturdy regardless of geopolitical tensions, excessive fuel costs and the Iran conflict, based on public sale knowledge from Manheim.
“We thought we might see some influence from the Center East battle, and that will nonetheless occur. However proper now, the info is evident: used-vehicle demand is wholesome and stock ranges are comparatively tight,” Cox Automotive’s chief economist, Jeremy Robb, mentioned in a launch.
Cox stories days’ provide for used automobiles — a extremely vital section for sellers and shoppers — fell beneath 40 days in March. That marks the bottom level in 2026 and is down from year-ago ranges.
Retail costs for shoppers historically comply with modifications in wholesale costs, which Cox forecasts to rise at a traditionally secure charge of about 2% this 12 months. The typical listed value of a used car was $25,287 as of February, based on Cox. That compares with new automobiles at a mean value of greater than $49,100.
The stronger-than-expected demand for used automobiles thus far this 12 months triggered Cox on Tuesday to barely enhance its used car forecast for the 12 months to twenty.4 million, up from 20.3 million. However the increased demand is projected to be offset by softer gross sales in the course of the second half of the 12 months, with complete used car gross sales for all of 2026 anticipated to say no by about 1% in contrast with 2025.
“Stronger retail demand continues to be supported by new car affordability pressures which are pushing shoppers towards used automobiles, whereas decrease new-vehicle gross sales are constraining trade-in volumes and limiting provide into the used market,” Cox mentioned Tuesday.
Nearly all of U.S. shoppers buy used automobiles since they’re extra inexpensive than new fashions. The brand new U.S. car market is anticipated to hit about 15.8 million automobiles this 12 months, based on Cox.
