If you’re in the market for a pre-owned vehicle, buckle up: the “used-car deal” you expected isn’t quite showing up. According to a recent study from CARFAX, the average used-vehicle listing price has climbed to roughly $25,000, its highest level in 18 months—about $1,300 over the prior level. Some 2023 models in strong demand—think Honda Civic, Ford Bronco, Kia Seltos, and Toyota Corolla Cross—are being listed at only about 10 percent below their new-car counterparts. For example, CARFAX found a 2023 Civic averaging $24,300, compared to around $27,400 for a new 2025 model.
One of the chief appeals of buying used has traditionally been getting the “big depreciation hit” taken by someone else. A three-year-old vehicle might have once dropped 40 percent in value, letting buyers skip that hit and still enjoy a relatively modern car or SUV. But when used prices creep within striking distance of new-car levels, that math doesn’t work anymore.
CARFAX attributes much of this to thin inventories, a lingering effect from the supply disruptions of the pandemic years. Fewer new-car sales then meant fewer trade-ins, and that left the used market starved for inventory. Tight supply has pushed prices higher and given sellers the upper hand. Other analysts agree. Kelley Blue Book data from Cox Automotive shows the wholesale used-car index staying essentially flat through late summer 2025—proof that dealers aren’t cutting prices yet.
For buyers, the takeaway is simple: don’t assume “used” automatically means “bargain.” If a two-year-old model costs only 10 percent less than new, you may be paying a used premium rather than earning a discount. Before signing on the dotted line, compare the total cost of ownership, including loan terms, insurance rates, and remaining warranty coverage. That “cheaper” car may not stay that way over time.
Of course, this is good news for those of you with a trade-in. When you have high used car values, year-end incentives, and falling interest rates, that bodes very well for affordability, which is the main concern I hear from Car Pro Show listeners recently.
One other trend I am seeing is dealers going away from Certified. The automakers have increased the fees to the dealer to Certify used vehicles, and in some cases, dealers tell me they are not certifying every eligible car like they were doing. They say that there have been instances where when they added the fee to the manufacturer and did all the things on the certified checklist that were required, the price was as expensive as a new car. I am continuing to watch this.
The used-car market hasn’t lost its place, but it’s changed. You can still find smart buys, but it takes more homework than it used to, and Car Pro Show dealers will help you with used vehicles as well as new. The old rule that “used equals savings” just isn’t automatic anymore. These days, buying used might save you money—or it might just save the dealer some floorplan interest. Either way, a little diligence goes a long way toward keeping that “deal” from turning into a surprise bill later on.