Wholesale used car prices hit their highest point in nearly three years in March amid strong demand and limited inventory.

Why it matters: With economic uncertainty swirling, car buyers are seeking alternatives to new vehicles, whose price tags are now averaging more than $49,000.

Driving the news: Cox Automotive's Manheim Used Vehicle Value Index rose 6.2% in March compared with a year earlier, marking its highest point since summer 2023. Values also increased 1.4% month over month — "a jump well above long-term norms," according to Cox.

• The non-seasonally adjusted average wholesale price for used vehicles was $20,102 in March.
• Average list prices topped $25,000, although that doesn't reflect actual transaction prices.

How it works: Dealers acquire vehicles at wholesale prices — typically via auction — and then use that to set retail prices for consumers.

Zoom in: On used car lots, inventory fell to a 40-day supply in March, a sign of steady demand.

• "While affordability constraints remain a limiting factor for many buyers, the combination of steady demand and constrained supply helped keep used vehicle retail pricing firm through the first quarter and buying activity healthy," Cox reported.

Yes, but: Prices are still down from their all-time high in 2022, when demand spiked as the market grappled with limited inventory of new vehicles.

What to watch: Whether economic turmoil from the war in Iran — including rising energy prices — reshapes the market for used vehicles.

Disclosure: Cox Automotive is part of Cox Enterprises, which also owns Axios.

Pershing Square Capital, led by billionaire Bill Ackman, has offered to buy Universal Music Group for around $63 billion, Axios' Dan Primack writes.

Why it matters: Universal is one of the world's three largest record labels, with such artists as Taylor Swift and Bad Bunny, while Ackman has been a sporadic suitor since 2021.

Zoom in: Per terms of the proposal, Universal by year-end would merge with Pershing Square SPARC Holdings and shift its stock listing to the NYSE from Amsterdam.

• Pershing Square holds a small stake in Universal, and Ackman was on its board from 2022 until last year.

The bottom line: Universal shares rose more than 10% on the news, after having been down more than 20% so far this year.

✈️ Delta Air Lines became the latest airline to raise its checked baggage fees by $10, to $45. United and JetBlue took similar steps in recent days as they face the higher cost of jet fuel. (Axios)

🚀 SpaceX expects to conduct a roadshow for its IPO in June. The company is targeting a $1.75 trillion valuation. (Reuters)

🔮 Fox News signed a deal to integrate Kalshi's prediction market data into its broadcasts. Kalshi has similar deals with CNN and CNBC. (The Hollywood Reporter)

🤑 Blackstone said a $10 billion "opportunistic credit fund" it was raising was oversubscribed. It comes after JPMorgan Chase CEO Jamie Dimon downplayed the risks to private credit in a public letter yesterday. (WSJ)

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