Consumers are now paying around $1,300 more for the average used vehicle as the price gap between new and used becomes unusually narrow
Centreville, Va.—New data from CARFAX shows that average used car prices have climbed to their highest point in 18 months to just under $25,000. Car shoppers are now paying around $1,300 more for the average used vehicle than they would have just a year and a half ago.
Notably, the price gap between new and used cars is unusually narrow for some models.
Typically, a three-year-old car would have lost about 40% of its value. But CARFAX data shows that some popular vehicles like the Honda Civic sedan and Ford Bronco, Kia Seltos, and Toyota Corolla Cross SUVs now have 2023 models priced within roughly 10% of their new 2025 counterparts.
What’s driving the tight market? Limited used car inventory, which remains below pre-pandemic levels. The ripple effects of reduced new-car sales during the pandemic mean there are fewer used cars available today.
Adding to the atypical market conditions is a dip in consumer confidence, now at its lowest point since April. In response, dealers and automakers are offering new financing deals to encourage buyers to consider new vehicles.
Comments are closed.