- Wholesale used vehicle prices increased last month.
- With tax refund season underway, used car sales typically pick up over the next three months.
The wholesale prices car dealers pay for the used cars they later sell to you and me increased last month.
The Manheim used-vehicle value index rose to 210.5, translating into a 2.4% increase in used-vehicle prices. This takes into consideration mileage and seasonality. Cox Automotive is the parent company of Kelley Blue Book and Manheim, the largest car auction provider, where most dealers obtain the used cars they sell.
Why are prices for used vehicles creeping upwards? There are many factors, but the largest is the demand for used cars. Manheim tracks these prices because they tend to predict trends in used car prices. What happens in the auction market will happen to buyers about 6-8 weeks later.
According to Jeremy Robb, Chief Economist, Cox Automotive, “The spring bounce for wholesale markets looks like it started early this year, and stronger tax refunds and lower used supply may keep it running for longer than typically seen.”
Overall pricing is slightly higher than in the prior three years.
What does this mean for buyers?
Be prepared to pay a little more for a used vehicle. The average used car price is hovering around $26,000, which is almost 3% higher than in 2025. Dealers have a slightly short supply of used cars this month, and the more affordable cars they can sell for $15,000 or less are particularly hard to tind. You may have to wait to find the car you want.
Like you, car dealers are competing to get their hands on used cars. Unless you need a car now, be patient; the right car is out there.
Tips for Buyers
Tax season is in full swing, and some buyers will use their refund toward a down payment on one of the biggest-ticket items: a car. It is important to plan for your purchase. We recommend researching pricing, availability, and reliability. You can check out KBB.com to compare vehicle models, trim levels, and specifications.
Also, if you are considering several options but aren’t quite ready to purchase, find the vehicle at a dealership and go for a test drive. This will help you narrow down your choice and give you confidence that it is the right vehicle for you and your family.
