Wholesale used-vehicle prices (on a mix, mileage, and seasonally adjusted basis) were lower in March compared to February, according to a report. The Manheim Used Vehicle Value Index (MUVVI) declined to 202.6, which is a decrease of 0.2% from a year ago and also lower than the February levels. The seasonal adjustment caused the index to decline for the month, as non-seasonally adjusted values rose but not enough to account for the normal seasonal move. The non-adjusted price in March increased by 2.7% compared to February, moving the unadjusted average price up 0.4% year over year.

“March is typically the strongest month for wholesale markets, so it’s normal to see values rise. However, this year’s price increases were not enough to meet seasonal expectations, which is why our Index shows a decline,” said Jeremy Robb, senior director of Economic and Industry Insights at Cox Automotive. “Used retail demand remained strong throughout March, with days’ supply ending at low levels, driving healthy activity at Manheim. While we initially thought appreciation trends peaked mid-month, we saw a reacceleration of weekly gains for wholesale values in the last week. Given the impact of tariffs, we may see stronger wholesale prices for the coming weeks as the market decides how to handle new tariffs at the border.”

The recent implementation of automotive-specific tariffs will significantly impact the used-vehicle market in terms of sales, inventory and pricing, Cox reported. The new 25% tariffs on all imported vehicles have already disrupted the new-vehicle landscape, leading to increased urgency among consumers to purchase vehicles before prices rise further. The sudden urgency in the new-vehicle market will also likely spill into the used-vehicle market.

“I think we have officially started our roller coaster ride,” said Cox Automotive Chief Economist Jonathan Smoke. “March used-vehicle values were higher on a non-seasonally adjusted basis, but compared to recent Marches, it did not quite live up to what we’ve seen. And it appeared the “spring bounce” was starting to end. But then suddenly: The tariff announcement. And the most recent activity suggests we’re going to see a sizeable increase in the Index in April.”

Used-vehicle inventory will eventually be impacted by new-vehicle tariffs as well. Late in March, used retail inventory trended lower, falling to 2.15 million units, down 1.2% against 2024. Used days’ supply declined by eight days. However, lower supply is mostly typical this time of year, as the used-vehicle market feels its “spring bounce” during tax refund season, resulting in stronger sales and tightening inventory. Inventory will be a key metric to watch in the coming weeks and months.

Expected tariffs on auto parts and components will also impact service and reconditioning in the used-vehicle market.