Used car prices in 2025 are climbing faster than a teen's RPM in a tricked out Civic at a stoplight! According to Edmunds' Q1 2025 report, the average price for a 3-year-old used vehicle has surpassed $30,000, marking the first time since 2023 this threshold has been crossed. What is happening?
Here are Five Fast Facts on rising used car prices:
- 🤏 Short Supply - At the start of May, used car dealers had a 43-day supply of vehicles, the lowest level since 2021 (but better than April, which was 40.5).
- 💨 Moving Fast - A lot of this drive in demand is folks trying to buy cars before the potential tariffs kick in, with more visits to lots this spring than we've seen since 2022.
- 📈 New Milestone - The average price for a 3-year-old used vehicle hit $30,522 in 2025, up 2.3% from the previous year. That's great for dealers...not so much for buyers.
- 🐌 Slooooowing Down - The average age of trade-ins rose to 7.6 years, the oldest since 2019, indicating fewer newer vehicles are entering the used market. Used vehicles are taking longer to sell, too, with an average of 38 days on dealer lots, the highest since 2021. These things are slowing down like a minivan in the left lane with a “Baby on Board” sticker and no place to be.
- 🤔 Tougher Choice - The gap between new and used vehicle prices narrowed to $16,970, the smallest since 2022, making used cars less of a bargain.
🔥Bottom line: In summary, buying a used car in 2025 feels like shopping during a clearance sale where everything's still full price. With prices climbing and inventory aging, it's a challenging time for car shoppers. It feels a whole lot like playing Monopoly with real money—you’re going to pay a lot, and someone else is always winning.
Are you shopping for cars right now?
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