The average used car in America was listed for $25,565 last month — a 0.25% increase from the previous month but still 3.4% lower than a year prior.
Prices are staying higher, in part, because supply is thinner than usual. America’s car dealers had about 2.18 million used cars on lots in early December – a 46-day supply. That’s nine days fewer than the same period 12 months prior. The data come from Kelley Blue Book parent Cox Automotive.
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Supply May Remain Low for Years
Supply is likely to remain below normal for much of 2025. Automakers built about 8.1 million fewer cars during the COVID-19 pandemic than they otherwise would have. Those unbuilt cars will never reach the used market, constraining supply for years to come.
In addition, leasing declined during the pandemic as car prices rose.
When a lease ends, lessees typically have the right to return the car or buy it at a price established when they first agreed to terms. Cars usually depreciate, and lenders have historically had an easy time predicting depreciation well enough to set a fair lease-end purchase price several years in advance.
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The early pandemic’s supply chain shortages caused strange market conditions, in which recent-model used cars rose in value. Millions of drivers found themselves with an expiring lease and the right to buy the car for its residual value, a price fixed years before that now seemed low. Many purchased the cars rather than returning them to start a new lease.
That denied dealers a steady supply of recent-model used cars they had come to depend on.
Cheapest Used Cars Hardest to Find
Today, dealers are shortest on the older, higher-mileage used cars they sell for under $15,000. They have just a 34-day supply of those.
Ford, Chevrolet, Toyota, Honda, and Nissan were the top-selling used car brands, accounting for 49% of all used vehicles sold.