Hertz Global Holdings, Inc. ( HTZ ) shares are trading higher Tuesday after used car prices rose to the highest point since summer 2023.

Hertz stock is showing exceptional strength. What’s driving HTZ stock higher?

Used Vehicle Prices Climb To Multi-Year High

Cox Automotive's Manheim Used Vehicle Value Index increased 6.2% last month compared with a year earlier, reaching its highest level since the summer of 2023, according to CNBC.

The index, which tracks prices of used vehicles sold at U.S. wholesale auctions, reflects continued strength in the market.

Cox Automotive said demand for used vehicles remains strong despite geopolitical tensions, high gas prices and the Iran war, while inventory levels remain relatively tight. Supply for used vehicles fell below 40 days in March, marking the lowest level in 2026 and declining from year-ago levels.

Retail prices typically follow wholesale price trends, with Cox forecasting used vehicle prices to rise at a stable rate of about 2% this year. The average listed price of a used vehicle was $25,287 as of February, compared with more than $49,100 for new vehicles.

Cox also raised its 2026 used vehicle sales forecast slightly to 20.4 million units from 20.3 million, though total sales are still expected to decline about 1% compared with 2025.

Rising used vehicle prices can support Hertz's vehicle resale value, which may help improve returns on its fleet. The positive reports on used vehicle prices Tuesday is driving Hertz shares higher while the broader market faces selling pressure.

Hertz Shares Rise Tuesday

HTZ Price Action: At the time of writing, Hertz shares are trading 9.79% higher at $5.83, according to data from Benzinga Pro.

Image via Shutterstock