American drivers hunting for a deal on the used-car lot are running into sticker shock. According to the latest Manheim Used Vehicle Value Index, wholesale used-car prices jumped 6.2 percent year-over-year in March to 215.3 — the highest reading since the summer of 2023. That’s a 1.4 percent gain from February alone and 2.3 percent higher than where the year began.

The jump comes as retail used-vehicle sales rose roughly 2 percent in the first quarter compared with a year earlier. At the same time, supply has tightened sharply. Dealers’ days’ supply of used cars slipped below 40 days in March, the lowest level so far this year and down from 2025.

Cox Automotive chief economist Jeremy Robb credits the surge to strong wholesale demand and dealers’ early-year bets on consumer spending. “As soon as this year began, prices at Manheim started moving higher as dealers anticipated strong demand from higher tax refunds to consumers,” Robb said. Buyer competition at auction has been fierce, pushing the March sales conversion rate to 68.2 percent — more than four points above the three-year average for the month.

So far, broader economic worries have failed to dent the market. Robb noted that potential fallout from the Middle East conflict has not yet shown up in the data. “The data is clear: used-vehicle demand is healthy and inventory levels are relatively tight,” he added. With more tax returns still to be filed, analysts expect values to hold steady through the summer.

Even the used-EV segment, once a source of soft pricing, posted firmer numbers in the first quarter as more off-lease models reached the market and buyers sought affordable alternatives to new electric vehicles.

The trend reverses years of cooling prices after the pandemic-era shortages eased. For many families, the used-car market was supposed to be the budget-friendly option. Instead, it is once again testing wallets.

What do you think is behind the continued rise in used-car prices? Share your thoughts below.