"Prices for a slightly-less-than-new-car have been soaring over the past few years. Before the pandemic, the average price for a 3-year-old vehicle topped out at a little over $22,000. In 2025, the cost is upward of $31,000. And according to Edmunds, which tracks the car market, that number may soon sound like a bargain. "I mean, it's kind of mind-boggling for anybody who had the pleasure or context of having bought pre-2020, right?" says Ivan Drury, the director of insights at Edmunds."
"Supply chain disruptions in new vehicle production, increased competition from rental car companies, and a surge in demand from consumers seeking to socially distance themselves from others behind the wheel caused a scramble for older vehicles. Like many things post-pandemic, the used car sector is not back to normal. The average price of all used car transactions is below its pandemic peak, but still thousands of dollars more expensive than it was six years ago."
"With tariffs in the mix and new car prices continuing to creep up, the future may be worse. The answer to the perennial question of when is the "best time" to buy a used car may now permanently be "there's no such thing as a best time." And when it comes time to get a car, new or used, hope you have some time to shop around."
Used-car prices surged after pandemic-era supply and demand shocks and have not returned to pre-2020 levels. Average prices for three-year-old vehicles rose from about $22,000 pre-pandemic to over $31,000 in 2025. Supply chain disruptions in new-vehicle production, rental-fleet competition, and consumer demand for personal vehicles created sustained scarcity in the used market. Aggregate used-car prices sit below pandemic peaks but remain thousands higher than six years ago and have increased about 6% in the past year. Tariffs and rising new-car prices threaten further increases, erasing predictable "best time" buying windows.
Read at Business Insider
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