Used car prices will reach record high in Q3 2025
With used car prices exceeding $31,000 in Q3 2025, EVs are emerging as a budget-friendly option.
america today
- The average transaction price for a three-year-old used car has exceeded $30,000 in each quarter of 2025 so far.
- The average transaction price for used cars in the third quarter was the highest since 2022, Edmunds said.
For some time now, the prices of new and used cars have continued to rise.
However, this year, the high prices are noticeable.
New car sales also hit a milestone in September, with the average transaction price exceeding the $50,000 mark for the first time, according to Kelley Blue Book.
But the used car market also presents challenges for those on a budget.
Ivan Drury, director of insights at Edmunds, said there’s something unusual about the price of a three-year-old used car, which averaged more than $30,000 in the third quarter of this year, up 5% from a year earlier to $31,067. This is the highest average transaction price in the third quarter since 2022, when the average reached $31,259, according to data provided by Edmunds.
Used car prices soar as affordable options disappear
Used car prices have soared 41% since 2019. See why $15,000 cars are disappearing fast.
In fact, the price of a 3-year-old used car has been over $30,000 throughout this year, with the average transaction price in the first quarter reaching $30,522 and $31,216 in the second quarter.
“Given the continuation of this trend, we are now witnessing something extraordinary,” Drury said.
The last time used car prices were this high for an extended period of time was several years ago. It surpassed the $30,000 threshold in the fourth quarter of 2021 and remained above that level through the third quarter of 2023, when the average transaction price fell to $29,697, Edmunds said.
But the era before that was unique.
“The last time we saw it, the whole world was turned upside down,” Drury said.
A few years ago, a combination of factors including the pandemic and chip shortage caused new and used car prices to skyrocket.
The situation is different this time, with used cars, for example, sitting at dealers for long periods of time.
According to an Edmunds article, “Inventories are now recovering, and many are holding off on purchases without paying near-new vehicle prices. Longer sales periods indicate buyers are becoming more selective, weighing higher used-vehicle prices against new-vehicle incentives. This shift continues to reshape dealer sales across segments.”
There is usually downward pressure on prices in the fourth quarter, but Drury said he does not expect a sharp decline this year. He said used car prices are unlikely to fall significantly until 2026.
For consumers looking for a good deal, one option may be an electric vehicle.
“Used EVs, on the other hand, offer one of the strongest value propositions on the market, often at dramatically reduced values when compared to their original MSRP, offering shoppers advanced technology and performance at a price well below new prices,” the Edmunds article states, referring to the acronym MSRP. “In many ways, used EV buyers are accepting technology that is only one generation old, while new EV buyers still face the risk of paying a premium price for models that evolve rapidly year after year.”
The article notes that the main problem for potential buyers is the relative scarcity of used EVs available, accounting for 1.6% of all three-year old used cars in inventory in the third quarter.
Eric D. Lawrence is senior auto culture reporter for the Detroit Free Press. If you have any tips or suggestions, please contact us at elawrence@freepress.com. Become a subscriber. Submit a letter to the editor at freep.com/letters.
