{"id":1443,"date":"2025-07-09T20:38:14","date_gmt":"2025-07-09T20:38:14","guid":{"rendered":"https:\/\/www.autobuyersmarket.com\/news\/?p=1443"},"modified":"2025-07-09T20:38:15","modified_gmt":"2025-07-09T20:38:15","slug":"used-car-prices-hold-steady-despite-market-disruptions-analysts-say","status":"publish","type":"post","link":"https:\/\/www.autobuyersmarket.com\/news\/2025\/07\/09\/used-car-prices-hold-steady-despite-market-disruptions-analysts-say\/","title":{"rendered":"Used Car Prices Hold Steady Despite Market Disruptions, Analysts Say"},"content":{"rendered":"\n
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Amid ongoing supply chain disruptions, rising tariffs, and elevated financing costs, used car prices in the U.S. have shown stability heading into the second half of the year. Analysts say a combination of spring trade-in volume and cautious consumer demand is keeping prices from swinging too far. File photo: Jonathan Weiss, licensed.<\/figcaption><\/figure>\n\n\n\n

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<\/a> when adjusted for seasonal trends. That modest gain is viewed as a sign of price stabilization in an otherwise turbulent market.<\/p>\n\n\n\n

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We\u2019re seeing a cooling in volatility due to increased inventory from trade-ins earlier this spring,\u201d said Jonathan Smoke, chief economist at Cox Automotive, which owns Kelley Blue Book. \u201cDespite external pressures, there\u2019s no sharp spike or crash right now\u2014just a gradual normalization.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

The broader context, however, remains complex. A 25% tariff on imported vehicles\u2014imposed in April 2025\u2014disrupted 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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

On the retail side, the average transaction price for a 3-year-old used vehicle climbed to $30,522\u2014a 2.3% year-over-year increase\u2014according to data from Edmunds. Cars are now sitting on dealer lots for an average of 38 days, the longest turnover rate since early 2021.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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\u2014higher baseline prices, slower turnover, and a cautious, value-driven customer base.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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Don\u2019t expect prices to fall back to 2019 levels anytime soon,\u201d Smoke added. \u201cBut if you’re shopping now, you’re at least working with a more predictable market.\u201d<\/em><\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"

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\u2019re seeing a cooling in […]<\/p>\n","protected":false},"author":3,"featured_media":1444,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-1443","post","type-post","status-publish","format-standard","has-post-thumbnail","category-market-updates","entry"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\n\t\t\n