AUSTRALIA is part of a global trend in soaring used-vehicle demand with the US now reporting wholesale used-vehicle prices hit a two-and-a-half-year high in March.

Cox Automotive’s Manheim auctioneers in the US said that the Manheim ‘used vehicle value index’ (MUVVI) was up 6.2 per cent year-on-year to 215.3.

At the same time, wholesale inventory remained tight at Manheim with sales conversion climbing to 68.2 per cent — above historical norms — signaling sustained dealer demand and continued competition in the auction lanes.Manheim US said that: “The retail used-vehicle market gained momentum in Q1, with sales running ahead of last year; tight inventory and steady demand are putting upward pressure on pricing at dealer lots”.

Manheim Auctions in the US sold 37,000 used EVs at auction in the first quarter of 2026 – more used EVs than the entire Australian new EV market over the same period.

“As soon as this year began, prices at Manheim started moving higher as dealers anticipated strong demand from higher tax refunds to consumers,” said Cox Automotive chief economist Jeremy Robb.

“Sales conversion rates, a clear sign of demand, were higher against 2025 for every week but one in Q1, and vehicle value trends at auction show we are well ahead of last year and where we would normally be during a spring bounce in the wholesale markets.

Cox Automotive chief economist Jeremy Robb

“We thought we’d see some impact from the Middle East conflict, and that may still happen.  But right now, the data is clear: used-vehicle demand is healthy and inventory levels are relatively tight.”

Manheim US also noted that EVs outperformed long‑term expectations which was a sign of healthy demand for used EVs. 

It said rising fuel prices positively influenced demand last month “as dealers pursued potential opportunities with used EV, which are notably more affordable than new EVs”.“EV availability at Manheim improved in Q1 as well, as more off-lease EVs are moved into the auction lanes,” the company said.

“The growing EV share reflects an increasing flow of off‑lease vehicles back into wholesale channels, as many lessees remain unlikely to purchase vehicles priced above market value at lease end.

“Lenders have been absorbing these valuation adjustments gradually, helping the wholesale market digest the increase in used EVs. 

“As additional off‑lease EVs return in coming quarters, Manheim expects EV activity to continue rising, further solidifying their role within the wholesale ecosystem.”

In its outlook for the 2026 year, Cox Automotive said total used‑vehicle sales were forecast to decline 1 per cent year-on-year; “however, the used‑vehicle retail sales forecast was revised higher in the Q1 update to 20.4 million units, up from 20.3 million previously”.“Stronger retail demand continues to be supported by new-vehicle affordability pressures that are pushing consumers toward used vehicles, while lower new‑vehicle sales are constraining trade‑in volumes and limiting supply into the used market,” Manheim US said.

While the trends in used-vehicle sales and prices, and in the EV market, appear similar between the US and Australia, Cox Automotive Australia said they remained very different.

It said that unlike Australia, the US market has different government policies shaping purchase decisions and does not have 20-plus Chinese brands setting a price ceiling for late-model used cars.