WEST PALM BEACH, FL – According to Kelley Blue Book, the average price dealers paid for used vehicles at wholesale auctions in June increased just 1.6% compared to May when adjusted for seasonal trends. That modest gain is viewed as a sign of price stabilization in an otherwise turbulent market.
We’re seeing a cooling in volatility due to increased inventory from trade-ins earlier this spring,” said Jonathan Smoke, chief economist at Cox Automotive, which owns Kelley Blue Book. “Despite external pressures, there’s no sharp spike or crash right now—just a gradual normalization.”
The broader context, however, remains complex. A 25% tariff on imported vehicles—imposed in April 2025—disrupted both the new and used vehicle markets. Anticipating price hikes, many new-car buyers rushed into purchases earlier this year, resulting in more trade-ins than expected. But new vehicle sales have slowed considerably since May, leaving some dealers with excess used inventory and fewer customers ready to buy.
According to the Manheim Used Vehicle Value Index, wholesale used car prices in June were up 6.3% compared to the same month last year. That figure marks the highest annual increase since August 2022.
On the retail side, the average transaction price for a 3-year-old used vehicle climbed to $30,522—a 2.3% year-over-year increase—according to data from Edmunds. Cars are now sitting on dealer lots for an average of 38 days, the longest turnover rate since early 2021.
Cox Automotive and other analysts say they expect prices to remain elevated but relatively stable through the rest of 2025. A key factor is the limited supply of off-lease vehicles, which historically serve as a reliable source of late-model used cars.
At the same time, affordability remains a growing concern. Higher interest rates, rising insurance premiums, and lingering inflation have made it harder for many Americans to finance used cars, particularly in the $25,000 to $35,000 range. Some shoppers are choosing to hold on to their current vehicles longer or are turning to older, higher-mileage cars as more budget-friendly options.
While the used car market is no longer experiencing the wild price swings seen during the height of the pandemic, buyers and sellers alike are adjusting to what may be a new normal—higher baseline prices, slower turnover, and a cautious, value-driven customer base.
Industry experts advise shoppers to stay flexible on vehicle type and brand, and to remain patient as supply conditions and financing options continue to evolve.
Don’t expect prices to fall back to 2019 levels anytime soon,” Smoke added. “But if you’re shopping now, you’re at least working with a more predictable market.”
Joe Mcdermott is a staff reporter who keeps his eyes peeled for interesting automotive news. He works mainly for our Long Island Guide as well as our IT firm, SEARCHEN NETWORKS®. Mcdermott, one of our first and thus veteran reporters, is also a data analyst for select independent news and media organizations in the United States.