Rising Used Car Prices: An Analysis of Current Market Trends

The used car market in the United States is experiencing significant price increases, with the Cox Automotive's Manheim Used Vehicle Value Index reporting a 6.2% year-over-year rise in March 2026. This marks the highest level of used vehicle prices since the summer of 2023. The index, which tracks wholesale auction prices, indicates that demand for used vehicles remains robust despite external economic pressures, including geopolitical tensions and high fuel prices. The average listed price for a used vehicle was approximately $25,287, in stark contrast to new vehicles averaging over $49,100.

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A critical factor contributing to the rising prices is the tight supply of used vehicles, which fell below 40 days in March 2026—the lowest level recorded this year. This shortage is exacerbated by a decline in new vehicle sales, which limits trade-in volumes and consequently reduces the inventory available in the used market. Cox Automotive forecasts that total used vehicle sales for 2026 will reach 20.4 million units, slightly up from previous estimates, although a 1% decline is expected compared to 2025.

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Cox Automotive's chief economist, Jeremy Robb, noted that the strong demand for used vehicles is partly driven by affordability pressures in the new vehicle market. As consumers face higher prices for new cars, many are shifting their focus to used options. Robb stated, “The data is clear: used-vehicle demand is healthy and inventory levels are relatively tight.” Despite concerns that geopolitical events, such as the ongoing conflict in the Middle East, could impact consumer sentiment, current data shows resilience in the used vehicle market.

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The rise in used car prices has positive implications for rental companies like Hertz Global Holdings, Inc. As used vehicle prices increase, the resale value of Hertz's fleet also rises, which can significantly reduce depreciation costs. Hertz has already locked in purchase prices for its new fleet, allowing the company to benefit from higher resale values without facing increased acquisition costs. This dynamic is expected to enhance Hertz's profitability as it continues to rotate its fleet to include more in-demand models.

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While the current trends indicate a strong used vehicle market, some analysts caution that the anticipated softness in the second half of 2026 could temper overall sales. The market's ability to maintain high prices will depend on various factors, including consumer behavior and broader economic conditions. Robb emphasized that while the market shows resilience, potential impacts from external factors remain a concern.

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• “The data is clear: used-vehicle demand is healthy and inventory levels are relatively tight,” — Jeremy Robb, Chief Economist, Cox Automotive

Why Used-Car Prices Keep Rising

• “As we move towards summer, we expect Manheim values to hold their ground with many more consumers yet to file their tax returns this year,” — Jeremy Robb, Chief Economist, Cox Automotive

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In summary, the used car market is currently characterized by rising prices driven by strong demand and limited supply, with significant implications for both consumers and rental companies. The outlook remains cautiously optimistic, with expectations of continued price stability amid potential economic fluctuations.

Why Used-Car Prices Keep Rising