Wholesale used-vehicle prices fell in February, though they started to pick up at the end of the month as tax returns began reaching consumers, Cox Automotive said.

For the month, its Manheim Used Vehicle Value Index fell 13% year-over-year to 203.8.

But February ended with “some of the strongest weekly gains in wholesale prices for many years,” said Cox Senior Director of Economic and Industry Insights Jeremy Robb.

Cox said the average tax refund this year is up 4% over 2023, increasing retail buying activity.

“In turn, dealers are coming to the lanes and buying units at Manheim right at the start of the spring selling season for wholesale markets,” Robb said.

The average daily sales conversion rate normalized in February to 61% after averaging about 59% for the month over the previous three years during the pandemic.

Cox estimates used-vehicle retail sales rose 18% month-over-month and 5% year-over-year. Retail days’ supply ended at 46, down by eight days month-over-month but up two days year-over-year.

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