A used car dealership is seen in Annapolis, Maryland on May 27, 2021, as many car dealerships across the country are running low on new vehicles as a computer chip shortage has caused production at many vehicle manufactures to nearly stop.

DETROIT — A closely watched barometer for used vehicle pricing jumped last month as dealers sped to increase inventories amid expectations of a robust spring selling season.

Cox Automotive on Friday reported its Manheim Used Vehicle Value Index — which tracks prices of used vehicles sold at its U.S. wholesale auctions — increased 4% in February compared with a year earlier, to a level of 212.3. That was up 0.8% from January and marks the index's highest level since September 2023.

"Since the start of 2026, we've seen mostly solid demand at Manheim with higher sales conversion rates indicating an appetite from dealers to buy. As we progressed through February, we saw prices move higher than usual, especially in the back half of the month," said Jeremy Robb, Cox chief economist.

Robb said the buying optimism was fueled by expected higher tax returns for American consumers, which offset broader economic and geopolitical concerns. However, the war in Iran introduces risks to the economy and may "put a damper on consumer appetite in the short run," he said.