Cox Automotive’s Manheim Used Vehicle Value Index reached its highest level in nearly three years, as used-car demand remains strong and wholesale prices bounced back further than expected, Cox said Tuesday.

The MUVVI for March came in at 215.3, which is a 6.2% year-over-year increase and a 1.4% hike from February, when adjusting for mix, mileage and seasonality.

The last time the index was this high was May 2023, when it reached 224.5, Cox said.

Unadjusted, values were up 5.7% year-over-year in March and climbed 4.2% month-over-month.

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

“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,” Robb said. “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.”

Sales conversion rates at Manheim auctions in March were at 68.2% in the most recent measure, which is up 5.5 points from February and 4.6 points higher than the most recent three-year average for March.

This, Cox said, indicates “strengthening buyer activity and continued competition for available inventory in the wholesale lanes.”

Over at Black Book, its Used Vehicle Retention Index for March came in at 147.7, up 1.9% from February and down 0.1% year-over-year.

“Despite geopolitical instability and a sharp rise in fuel prices last month, the market continued to show strong spring momentum,” Black Book vice president of data & analytics Laura Wehunt said in a news release.

“While seasonal appreciation is typical this time of year, an earlier and more pronounced tax season accelerated that trend, contributing to an increase in the Black Book Used Vehicle Retention Index,” Wehunt said. “Notably, luxury car segments were the only ones to remain stable, posting little to no gains over the same period.”

Looking at how wholesale prices may behave going forward, Robb at Cox Automotive noted, “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. The end of March typically proves to be the ‘peak’ for price action at Manheim. 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.”