PHILADELPHIA–The average price of a used vehicle has climbed above $25,500 as more consumers turn to pre-owned cars in search of affordability, according to an analysis of the market by Dealership Guy.
Citing data from CARFAX, the report said seven-day median prices have risen roughly $1,500 since mid-March, following a $450, or 1.7%, increase in February. By comparison, prices rose 1.1% in March 2025, the analysis noted.
The recent surge comes after used-car prices hit their lowest point of the past year in January, Dealership Guy reported.
Prices for certain vehicle categories continue to climb. SUVs and luxury SUVs were up 2.3% at the end of March, while demand for electric vehicles has accelerated as gasoline prices exceeded $4 per gallon. EV prices increased by about $560 over the past month, according to the analysis.
Dealership Guy attributed the overall price increases to a combination of stronger sales, constrained inventory stemming from the COVID-19 pandemic, and rising prices for new vehicles. The report also noted a shortage of high-demand, lower-mileage certified pre-owned vehicles, which is pushing prices higher.
Despite the recent jump, price increases are moderating compared with earlier periods, the analysis found.
Best Values by Region
Regionally, Florida offers the best value for used-car buyers based on CARFAX’s history-based pricing estimates, with listing prices coming in below recommended levels. Texas and California ranked second and third, respectively, in value.
Depreciation has also slowed, helping used vehicles retain more of their value. CARFAX data cited in the report showed 2025 model-year vehicles have depreciated 12.5%, while 2021 models have declined 34%.
‘Classic Supply and Demand’
“There continues to be a limited used car inventory, and with that lull in supply, prices increase,” Patrick Olsen of CARFAX said in the analysis. “It’s the classic supply and demand. But in that, EVs have seen a resurgence with gas prices rising. The demand for EVs is up. As new car prices continue to get higher, used cars are being considered by more consumers than one year ago.”
The report said dealers may need to take a more creative approach to sourcing inventory in a competitive market, including tapping service lanes, trade-ins, online channels and auctions, while maintaining competitive retail pricing.
