Quick Facts About Buying a Used Car
- Now is a good time to buy a used car. Tariffs on new cars may send buyers to look at used vehicles, driving up prices in the coming months.
- At the start of April, the average used car listing price was $25,180.
- Used-vehicle inventory remains tight, with 39 days’ supply at the beginning of April, down four days compared to a month earlier.
Even though used car inventory is tight, now is a good time to buy. New car tariffs could send would-be buyers to used cars, further driving up prices in the coming months due to greater demand.
Many factors can influence whether it’s a good time to buy a used car, from available inventory to interest rates. A tight supply of newer used and older vehicles could make it difficult to find exactly what you want. Also, interest rates remain higher on used vehicles than on new ones. Still, there are plenty of benefits to buying a used car right now. We explain. You can skip ahead using the jump links below.
- Used Car Market Overview
- How Much Does a Used Car Cost?
- Pros of Buying a Used Car
- Cons of Buying a Used Car
- Tips for Buying a Used Car in Today’s Market
- Bottom Line
Used Car Market Overview
The Cox Automotive days’ supply report shows that the used-vehicle supply was 39 days at the start of April, down four days from a month earlier. The report is based on the estimated daily retail sales rate for the most recent 30-day period.
During March, a total of 1.66 million used vehicles were sold at franchised and independent dealers, up 9.4% month over month and 12.2% from a year earlier.
Today’s used car market suffers from an ongoing lack of inventory. Manufacturers made 8 million fewer new vehicles from 2020 to 2022 due to COVID-19 supply disruptions. During that time, many buyers, unable to find a new car to buy or lease, bought used cars, creating a tighter supply of used vehicles. With fewer leases in that timeframe, there will be a lower supply of vehicles for the used market for several years to come.
Cox Automotive forecasts muted sales growth for used cars, revising it to reach between 19.9 million units and 20.2 million units. According to Jeremy Robb, Cox Automotive’s senior director of economic and industry insights, cars coming off leases into the used market are down 17% year-over-year in his most recent report. Cox Automotive is the parent company of Autotrader.
RELATED: Used Car Buying Guide
How Much Does a Used Car Cost?
The vAuto Live Market View data, analyzed by Cox, show the average used car listing price was $25,180 at the start of April, with an average mileage of 70,487. The average list price is flat compared with last year.
If not paying in cash, consumers buying a used car often need to finance their purchase. Consumer car loan interest rates have remained high during the past several years, making it harder to afford a used car. Use our car affordability calculator to see what you can buy within your budget.
According to the vAuto data, there are nearly 2.14 million used vehicles available for sale, which is about the same as last year, but down from 2.18 million in March. If you are looking for a used car right now, it’s easy to narrow your search to find what you want. For example, it’s possible to filter and see results for cars for sale by private owners if that’s how you prefer to shop.
The data also show that certified pre-owned (CPO) sales jumped 21.2% month over month in March. CPO sales in March were up 6.4% year over year. The increase is likely due to stronger new-vehicle sales in March, which helps lift trade-in supply. Dealerships are offering more deals on certified pre-owned (CPO) cars. Those are usually lower-mileage used cars backed by the manufacturer. With an extra warranty, certified pre-owned vehicles can be a good deal, especially if there’s special financing that goes along with the car.
March’s CPO sales are estimated at 246,803, up from 231,927 in February.
“With new car prices rising, it might make sense to consider an older used car,” said Brian Moody, executive editor of Autotrader. “If you go out of your way to find a reliable model, it should last many years.”
Pros of Buying a Used Car This Month
- Tariffs on new cars could drive up prices for used vehicles in the coming months due to greater demand.
- New cars quickly depreciate once driven off the lot, making buying used a smarter idea any month of the year.
- Insuring a used car costs less than a new vehicle in most cases.
Cons of Buying a Used Car This Month
- Waiting for lower car loan interest rates in the months ahead may make sense if you need to finance your used car purchase.
- Buying a newer model used car can be more expensive than buying a new one in some instances.
- Dealing with a lack of inventory may mean you can’t find the car you want.
Tips for Buying a Used Car in Today’s Market
With several factors impacting used car buying, use the tips below to find the right one that fits your budget.
- Research used car models to find the best deal with dealerships and private sellers.
- Ask for the vehicle history report to learn about its maintenance and any accidents.
- Check the used car’s Kelley Blue Book value from our sister site to see if it’s a good deal.
- Get the best offer on your trade-in by shopping it around.
- Compare rates for your used car loan before settling on financing.
- Set your budget and use our car affordability calculator to determine what works best for you.
- Look for certified pre-owned manufacturer offers and other deals, including those on used car leases.
- Obtain quotes for car insurance before buying.
- Avoid signing any dealership sales agreement before seeing a cost breakdown of all line items.
Bottom Line
You might find some good deals before used car inventory tightens further. It might not be the exact vehicle you want. Always consider your personal circumstances when deciding whether it’s the right time for you to make the leap and buy a car. Do your research before deciding on buying used, and if it’s a newer model used vehicle, be sure to check the price of new cars and compare costs.
Can someone explain the annual dip in Days of Supply that appears to bottom out each March?
How much impact does that have on the price of used cars?
Finally, should prospective buyers wait a month for those numbers to recover before buying or is that likely to be when prices become affected by tariffs?
Thanks for reading, Darrel. The dip is all about tax refund season. Tax refunds drive the highest demand of the year because buyers have more money to use as a down payment. More money in consumers’ pockets means more demand soaking up supply. In general, supply rises after tax refund season for the rest of the year. Last year, sales stayed higher than normal through December, so dealerships didn’t get to ‘rebuild’ supply as much as usual and we started off 2025 lower than we normally do.
Wholesale prices usually rise due to tax refunds, and impact retail prices with a 4-6 week delay. February and March often see lower retail prices because dealers bought cars in December when prices are lowest. Tariffs could further increase used retail prices.
My comments are:
Can we ask why is this president hurting consumers ?
Can organizations question the president ti stop this?