Used Car Prices 12-23-25

In late 2025, U.S. used car prices are showing mixed trends: some segments, like Luxury and Pickup Trucks, saw recent increases, while EVs and Hybrids experienced significant drops, pulling overall averages down. While prices remain elevated compared to pre-pandemic levels, with 3-year-old cars still costly, the market is stabilizing, new car production is improving, and higher interest rates continue to impact affordability, making it a complex but potentially better time to buy, especially with holiday deals possible.  

Key Trends in Late 2025:

Regional & Segment Volatility: Prices aren't uniform; while some areas see luxury or truck price hikes, others (like the Northeast) saw overall drops, with Hybrids/EVs consistently falling.

EVs/Hybrids Under Pressure: These segments are seeing the largest price drops, making them a potentially good buy.

New Car Market Impact: Improved new car inventory and prices (though still high) are easing pressure on the used market, helping to normalize supply.

Slowing Price Growth: The rapid price increases of the pandemic era have slowed, with some data suggesting overall prices are steadily decreasing.

High Interest Rates Persist: High auto loan rates (APRs) make financing more expensive, impacting buyer affordability despite lower vehicle prices. 

What This Means for Buyers:

Patience Pays: The market is shifting, so waiting for potential holiday deals or researching specific segments (like EVs) could offer savings.

Research is Crucial: Understand local market trends and vehicle-specific demand, as conditions vary.

Financing Matters: High interest rates mean a good deal on the car's price can still be costly over time. 

In essence, the used car market in late 2025 is complex, moving away from extreme pandemic highs towards stabilization, with significant differences between vehicle types and regions. 

In 2025, the U.S. used car market experienced stabilization with modest price changes compared to the extreme volatility of previous years. While overall prices were still higher than pre-pandemic levels, they did not see sharp increases or decreases throughout the year. As of November 2025, the average used car price was approximately $25,512. 

Key Market Trends in 2025

Overall Stabilization: Experts noted that the market found a new equilibrium in 2025, ending the dramatic price swings of the 2021-2024 period.

Modest Price Fluctuations: The Manheim Used Vehicle Value Index for December 2025 was forecasted to be only 1.4% higher than in December 2024, a return to the modest, typical annual growth rates seen before the pandemic (around 2.3%).

Seasonal Patterns: The market largely returned to normal seasonal trends, with prices generally falling during the autumn and winter months, and rising in the spring.

EV Market Dynamics: Used Electric Vehicle (EV) prices had fallen in 2024 and continued to be volatile in 2025, often offering a strong value proposition for buyers.

Interest Rates: High interest rates remained a challenge for many buyers, keeping some out of the market. Expectations of future interest rate cuts in late 2025 and beyond were seen as a potential driver for increased demand.

Inventory and Demand: New car production recovery helped stabilize the market, but the overall supply of used cars, especially affordable models under $15,000, remained somewhat tight due to pandemic-era production cuts. Sales volumes were expected to increase slightly in 2025 compared to 2024. 

Outlook

Analysts suggest that prices should continue to moderate gradually as supply and demand rebalance in the coming years, though a sharp price drop is not expected. Consumers can track real-time price data and trends using resources like those from CarEdge and Cox Automotive. 

https://www.google.com/search?q=us+used+car+price+trends+2025

Comments

An increase in new car sales will produce more Used Cars and increase supply. This will lower prices on Used Cars.

Norb Leahy, Dunwoody GA Tea Party Leader