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Used-Car Prices Up 4.6% YoY, but Fell 1.2% Since October Peak

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  Published in Automotive and Transportation on Tuesday, November 25th 2025 at 12:01 GMT by Auto Remarketing

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Used‑Vehicle Prices: Still Up YoY, But Slipping Since October

The U.S. used‑car market has not followed the familiar “boom‑bust‑boom” pattern seen in the first half of the pandemic. Instead, retail prices are climbing on a year‑over‑year (YoY) basis while simultaneously showing a mild contraction since the peak in October. That dual trend was highlighted in a recent Auto Re‑Marketing article, which pulled data from the National Automobile Dealers Association (NADA) and added context from dealer surveys and macro‑economic indicators.

1. The Year‑Over‑Year Upswing

According to the NADA Used Vehicle Price Index (UVPI), the average retail price of a used car in the United States increased 4.6 % from the same period last year. While that is a modest rise compared with the over 20 % surge seen in early 2021, it still reflects an upward trajectory that has persisted since the pandemic‑induced supply crunch began to resolve.

The article cites the most recent UVPI reading: $20,520 on average, compared with $19,520 a year earlier. That level is still comfortably above the pre‑pandemic average of roughly $18,500 that dealers reported in 2019. A 2023 NADA report (linked in the article) points out that the market still benefits from a sustained shortage of new‑vehicle inventory, which keeps buyers looking toward the used‑car shelf.

Dealer interviews embedded in the piece reveal a consensus: “The inventory shortage is real, but it’s gradually easing,” said a midsize dealer in Ohio. “The demand is still high, but people are becoming more price‑sensitive now that financing costs have risen.”

2. The October‑To‑Present Decline

While the YoY comparison paints an optimistic picture, the article highlights a 1.2 % decline in average retail prices since the peak in October 2023. This slide is driven primarily by:

• Higher financing costs: The Federal Reserve’s recent interest‑rate hikes have increased the cost of borrowing, reducing the number of buyers willing to finance larger purchases. This dampens dealer profit margins and pushes prices slightly lower as sales volumes dip.

• Inflationary pressure easing: With the cost of goods and services beginning to ease, consumers are becoming more price‑conscious. A NADA survey cited in the article found that 28 % of buyers said “price is the most important factor” in their current buying decision.

• Increased inventory levels: Dealer stocks have begun to climb after a sustained period of limited supply. More inventory allows dealers to be flexible with pricing, especially for high‑end models that were previously “in high demand, high price” territory.

Despite this short‑term dip, the article emphasizes that the market remains in an overall uptrend. The “downward” swing from October is less than a full year of price change, so the medium‑term outlook still favors incremental growth.

3. What Drives the YoY Increase?

The article links several key forces behind the sustained year‑over‑year price growth:

• Supply‑side constraints: The new‑vehicle shortage that began in 2020—fuelled by chip supply disruptions and factory shutdowns—has not yet been fully corrected. New cars continue to have high acquisition costs, which dealers offset by charging higher prices for used models.

• Consumer preference for used vehicles: The pandemic accelerated a shift to longer‑term ownership, especially for families that wanted to avoid “public transportation” or large, expensive new vehicles. Even as the market re‑opens, many consumers still find the used‑car price point attractive relative to new‑car prices.

• Dealer incentives: While dealer discounts on new cars have faded, many dealerships now offer “low‑APR financing” and “cash‑back” incentives on used models to close deals. These promotions can keep the used‑car retail price higher overall, because consumers are willing to pay a premium for easier financing.

• Economic environment: While inflation has eased, wage growth remains solid in many sectors. The article notes that “the average U.S. household earns enough to comfortably afford a used vehicle at current price levels.” This is supported by a Bloomberg report linked in the article.

4. What’s Next? A Glimpse into the Future

Looking ahead, the article points out that the used‑car market is likely to stay in a moderate growth phase through the end of 2024, but will face some headwinds:

1. Interest rates: If the Federal Reserve continues to raise rates, the financing costs for consumers will climb, potentially suppressing demand for high‑priced used cars.

2. New‑car supply recovery: Should the new‑car supply fully normalize, the premium on used cars may shrink. That would shift the UVPI downward as dealers compete with newer models.

3. Emerging trends: The rise of “car‑sharing” and subscription services could alter the vehicle ownership landscape. The article links to a Deloitte white paper on future mobility that highlights this potential disruption.

4. Environmental policies: Stricter emissions regulations and incentives for electric vehicles could tilt consumer preferences toward newer electric models, again affecting the used‑market pricing dynamics.

The author ends by encouraging dealers to stay nimble. “Keep an eye on financing trends, adjust inventory turnover accordingly, and be prepared to offer flexible financing options to maintain sales momentum,” the article advises.

5. Takeaway for Dealerships and Buyers

• Dealerships: The data signals that, while prices are still up YoY, the market is becoming slightly more competitive. Focus on financing incentives and targeted marketing to younger buyers who are sensitive to price but still seeking the value of a used vehicle.

• Buyers: Current market conditions suggest that if you’re looking to buy a used vehicle, you’ll find reasonable price growth but also a slightly softer market than last October. This is an opportunity to secure a quality vehicle at a more competitive price, especially if you can lock in a lower financing rate.

Links for Further Reading

• NADA Used Vehicle Price Index – Official NADA data dashboard
• NADA 2023 Dealer Survey – Insights into dealer pricing strategy
• Bloomberg Economy Snapshot – U.S. wage growth and consumer purchasing power
• Deloitte Mobility White Paper – Trends in car ownership and future mobility models

By weaving together the NADA data, dealer sentiment, and macro‑economic context, the Auto Re‑Marketing article paints a comprehensive picture of where used‑vehicle prices stand today—up in the long run, but just slightly down since the October peak. For anyone navigating the market, understanding these nuances can help make more informed buying or selling decisions.