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The higher prices at used retail reflect strong wholesale values earlier in the spring, particularly for older, more affordable vehicles.
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Trends continue to normalize after a strong start to the year, as consumers contend with higher gas prices in the coming summer months.
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The Iranian conflict and rising gas prices inject much uncertainty into the future wholesale used vehicle markets, as higher gas prices soak up spendable income from vehicle buyers.
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Franchised and independent dealers had a total of 1.95 million used vehicles in stock in March, the lowest on record in the current data set.
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Solid demand at Manheim auctions with higher sales conversion rates indicate an appetite from dealers to buy.
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Wholesale values moved even faster than expected on the back of strong retail demand, driving the MUVVI to its highest reading since September 2023.
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Vehicle buyers are seeing a favorable purchasing window, with factors such as declining prices, improving used vehicle credit rates, and continued gains in credit availability.
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While consumer sentiment remains subdued, early reads suggest confidence is recovering amid good vehicle sales supported by lower APR rates.
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Better affordability compared to new vehicles and a larger selection of newer model year vehicles rank among the drivers of this market.
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As the month progressed, used retail sales were higher each week, ending with tighter inventory levels.
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