Edmunds: What you need to know about rising used car prices

If you’re buying for a utilized car this summer, you whitethorn person noticed thing frustrating: Prices are climbing again. According to the latest Edmunds’ Used Car Report, the mean transaction terms for a 3-year-old utilized conveyance has reached $30,522. That’s up 2.3% from the aforesaid clip past twelvemonth and marks the archetypal clip since mid-2023 that this fig has climbed backmost implicit the $30,000 mark.

Many radical expected utilized car prices to chill disconnected arsenic caller conveyance accumulation recovered post-pandemic. But arsenic the latest information shows, that’s not happening conscionable yet — and shoppers should recognize why.

What’s driving utilized car terms increases?

The basal origin of today’s precocious utilized car prices is constricted supply. Edmunds recovered that the mean property of trade-in vehicles was 7.6 years during the archetypal 4th of 2025. That’s the oldest mean since 2019, meaning less “near-new” vehicles — similar lease returns oregon late-model trade-ins — are entering the utilized market.

With less low-mileage recent-model-year vehicles available, shoppers vie for a smaller excavation of in-demand inventory. That contention keeps prices high, peculiarly for fashionable models.

Tariffs, too, tin power request for utilized cars. True, utilized cars aren’t straight taxable to tariffs. But higher new-car pricing due to the fact that of tariffs volition undoubtedly unit immoderate further radical to see buying a utilized car arsenic a much affordable alternative.

Slowing down successful a choky market

Another motion of the shifting market: The mean utilized conveyance spent 38 days connected a dealer’s batch earlier being sold successful the archetypal 3 months of this year. That’s the longest clip Edmunds has recorded since aboriginal 2021.

This slower gait suggests some buyers and sellers are approaching the marketplace cautiously. Dealers whitethorn beryllium holding steadfast connected pricing, knowing proviso is tight. At the aforesaid time, the reduced gait whitethorn besides bespeak that buyers are taking longer to find the close lucifer successful a smaller market.

Should you bargain present oregon wait?

Deciding whether to bargain present oregon clasp disconnected depends connected your situation. If you request a conveyance immediately, it inactive makes consciousness to store — but it’s important to beryllium realistic. Don’t expect melodramatic deals oregon fast-moving terms cuts. Instead, look for well-maintained models with beardown reliability records, and beryllium unfastened to adjusting your expectations regarding extras and options.

There’s a accidental much inventory volition scope the marketplace aboriginal successful 2025. Edmunds’ information shows that dealers are inactive abbreviated connected caller trade-ins, but that could alteration arsenic caller conveyance accumulation stabilizes and much consumers upgrade their cars. A humble summation successful the utilized proviso could assistance easiness pricing pressure.

Still, it’s improbable that prices volition instrumentality to pre-2020 levels. The manufacture continues to consciousness the effects of pandemic-era accumulation cuts, and adjacent a instrumentality to much emblematic accumulation levels won’t instantly lick the existent imbalance betwixt proviso and demand.

What you tin bash to get the champion deal

Shoppers tin instrumentality astute steps to get much worth successful today’s market. For starters, flexibility is key. Expanding your hunt radius to neighboring regions tin unfastened up much options. Considering little fashionable trims, colors oregon brands tin besides assistance you find amended pricing.

Certified pre-owned vehicles whitethorn transportation a flimsy premium, but they often see extended warranties and thorough inspections. That added information tin beryllium worthy it — particularly erstwhile prices are precocious and buyers are much acrophobic than ever astir getting a bully value.

It besides helps to beryllium informed. Online tools and information tin assistance you way mean prices, cheque conveyance histories, and comparison models crossed categories. Knowing what’s emblematic for the car you privation gives you a stronger presumption erstwhile it’s clip to negotiate.

Edmunds says

The utilized car marketplace successful 2025 is thing but predictable. Inventory is inactive recovering from pandemic-era disruptions, and some shoppers and dealers are tightening the purse strings. For buyers, that means patience, readying and flexibility are much important than ever.

If you request to bargain now, being unfastened to alternatives to your perfect car whitethorn assistance uncover amended value. And if you’re capable to wait, keeping a adjacent oculus connected marketplace conditions whitethorn springiness you an borderline erstwhile inventory improves.

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This communicative was provided to The Associated Press by the automotive website Edmunds. Josh Jacquot is simply a contributor astatine Edmunds.

Copyright 2025 The Associated Press. All rights reserved. This worldly whitethorn not beryllium published, broadcast, rewritten oregon redistributed without permission.