Your Money Minute Why Used Car Prices Are Soaring 10/17/25
Oct 17, 2025
Used car prices are on the rise due to several key factors. Higher new vehicle costs and tariffs are pushing buyers to the used market. Experts predict that these elevated prices will persist for the next 6 to 12 months, driven by lower supply from production shortages during the pandemic and fewer lease returns. It's a perfect storm of constrained inventory and consumers avoiding pricier new cars, resulting in a significant surge in used vehicle prices.
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Used Prices Mirror New-Car Supply
- Used car prices reflect new-car supply constraints and pricing more than typical consumer behavior.
- High new-vehicle prices push more buyers into the used market, lifting used prices.
Tariffs Help Explain Record New Prices
- Tariffs and related factors have pushed new-vehicle prices toward record highs.
- Those elevated new prices indirectly sustain stronger demand in the used market.
Plan For Persistent High Used Prices
- Expect used car prices to remain high for the next 6–12 months according to industry leadership.
- Plan purchases accordingly and budget for sustained elevated used-vehicle costs.