Used car prices hit highest level since summer 2023

(NewsNation) — A key measure of used car prices just hit its highest level in nearly three years as strong demand and tight supply push wholesale values higher.

The Manheim Used Vehicle Value Index, which tracks the prices dealerships pay for used cars at auction, rose 6.2 percent in March from a year earlier to its highest point since the summer of 2023, according to Cox Automotive.

Wholesale prices have been moving higher since the start of the year, as dealers anticipated strong demand from this year’s larger tax refunds. Those refunds helped “activate pent-up demand” and lift used retail sales in the first quarter, Cox said.

“The end of March typically proves to be the ‘peak’ for price action at Manheim, but the way this tax-refund season is unfolding, it could continue for a bit longer,” Jeremy Robb, chief economist at Cox Automotive, said in an analysis.

He added: “The Middle East conflict could dampen the spirits of the U.S. consumer, but we just haven’t seen it yet — our data is showing resiliency in the economy.”

Used........

© The Hill