Used-vehicle prices in the United States have climbed to their highest point in 18 months, with the average model now selling for just under $25,000, according to new data from CARFAX.
The price gap between some new and used vehicles has narrowed to within about 10 per cent, an uncommon trend that’s giving both buyers and dealers pause. Typically, a three-year-old vehicle would lose around 40 per cent of its value. But Carfax reports that some 2023 models, including the Honda Civic, Ford Bronco, Kia Seltos and Toyota Corolla Cross, are now priced within roughly 10 per cent of their 2025 counterparts.
“It’s rare for used and new car values to be this close,” said Patrick Olsen, Editor-In-Chief at CARFAX, in a statement. “Potential buyers should do their research and act quickly if they’re considering getting a new car; these price gaps won’t last forever.”
The unusual pricing is driven by a shortage of used inventory, still well below pre-pandemic levels. Fewer new vehicles were sold during the pandemic, meaning fewer trade-ins and lease returns are available today. Compounding the trend, consumer confidence has slipped to its lowest point since April, prompting OEMs and dealers to introduce more aggressive financing offers to keep buyers interested in new vehicles.
The tightening spread creates both risk and opportunity for dealers. With some used models encroaching on new-car pricing, transparent payment comparisons and strong new-vehicle financing incentives can help shift shoppers back toward the showroom. Certified pre-owned programs, meanwhile, remain an effective bridge for consumers still wary of new-car prices.
