Auto Mart: Used car prices rise over tight supply chain –Report

*Used-car prices surged 6.2 percent March 2026, driven by tight inventory and strong demand,marking the highest levels since summer 2023, says report

Emmanuel Akosile | ConsumerConnect

Acquiring used automobiles has become tougher for auto consumers, as used-car prices surged 6.2  percent March 2026.

ConsumerConnect gathered the price hikes were driven by tight inventory and strong demand, marking the highest levels since summer 2023.

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Consumers often buy a late-model used car because they can be priced thousands of dollars less than a new model.

However, the latest data suggest that the gap may be closing — at least at the wholesale level, report said.

Used-vehicle prices surged in the First Quarter (Q1) of 2026, continuing a rebound that has pushed wholesale values to their highest levels in nearly three years, according to Cox Automotive’s latest Manheim Used Vehicle Value Index (MUVVI) report.

The index increased to 215.3 March this year, up 6.2 percent from a year earlier and marking the fifth consecutive month of gains.

Prices also increased 1.4 percent month over month, reflecting what Cox described as a stronger-than-normal spring market.

Supply and demand

Cox Automotive said the gains were driven largely by robust demand and limited supply.

Inventory levels tightened throughout the quarter, with days’ supply falling below 40 days in March — one of the lowest readings this year — as vehicles sold quickly at auction and on dealer lots.

Simultaneously, high new-car prices — averaging above $49,000 — are pushing more consumers into the used market, further boosting demand, according to report.

However, slower new-vehicle sales have reduced the number of trade-ins, exacerbating the shortage of used vehicles.

“Used-vehicle demand is healthy and inventory levels are relatively tight,” Cox Automotive Chief Economist Jeremy Robb said in the report.

Robb noted that dealer competition at auctions has intensified, and sales conversion rates have risen above recent averages.

Demand for used EVs

The first quarter also showed strength in specific segments, including used Electric Vehicles (EVs), where increased off-lease supply and relative affordability compared to new EVs supported pricing and activity.

Retail sales reflected the same momentum, rising about 2 percent year over year in the First Quarter, even as overall supply remained constrained.

Looking ahead, Cox Automotive expects the used-car market to remain near current levels in the near term, report noted.

Prices are likely to hold steady through the spring and early summer, supported by tax refund season and ongoing demand.

The company, nonetheless, suggested the market might be more favourable for automobile buyers in the second half of 2026.

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