Quick Facts About Buying a Used Car
- April/May 2026 remains a good time to buy a used car as new-vehicle prices continue to demonstrate year-over-year increases.
- The average used car listing price in March remained relatively steady at $25,390, up less than 1% from a year ago and up 0.7% from February.
- Used-vehicle inventory continues to tighten, with a 37-day supply at the beginning of April — the lowest we’ve seen since 2021.
With new car prices continuing to climb, boosted by import tariffs on new vehicles and parts, would-be buyers are turning to the used market, increasing demand and keeping supply tight. Last year saw stronger-than-expected used car sales, though Cox Automotive experts continue to predict that sales will decline slightly in 2026. However, March tends to be an outlier, as it’s typically the strongest month for used-vehicle sales, and 2026 was no exception. March sales outperformed 2023 and 2024, though not last year’s, which saw a tariff-announcement-driven surge.
Prices remain relatively steady, but inventory continues to constrict. While conditions haven’t shifted radically, decreasing inventory suggests that buyers in the market should move forward with a used-car purchase sooner rather than later. However, many factors can influence whether it’s a good time to buy a used car, including available inventory and loan interest rates. The aforementioned increasingly tight supply of used vehicles could make it difficult to find exactly what you want. Also, interest rates on used-vehicle loans are higher than those on new-car loans. Still, there are plenty of benefits to buying a used car right now.
- Used Car Market Overview
- How Much Does a Used Car Cost?
- Pros and Cons of Buying a Used Car
- Tips for Buying a Used Car in Today’s Market
- Bottom Line
Used Car Market Overview
In March, an estimated 1.62 million used retail vehicles were sold, the highest level since last year and up from 1.37 million in February. The daily sales pace was up 7% in March from February’s. This strong sales performance in March was expected, as March is typically the strongest month for used-vehicle sales. This is usually driven by greater demand due to continuing high costs in the new-vehicle space, strong tax refunds, and continuing improvement in credit availability.
At the start of 2026, Cox Automotive economists predicted a modest sales decline for the year due to economic pressures and constrained supply. This predicted slight decline in sales may still play out over the course of the year, but March did see an improved sales pace — a typical seasonal pattern fueled by healthy tax refunds and a challenging affordability landscape in the new-vehicle market.
“The spring bounce can shift from year to year depending on where dealers’ inventory levels are at the start of the year and the strength of tax refund season,” said Cox Automotive Chief Economist Jeremy Robb. “Seasonal factors added some volatility, but any way you cut it, the market has been strong this year.”
As war across the Middle East continues, fuel prices are top of mind for the industry. With no clear end to the conflict in sight, consumers may soon consider new alternatives. “Gas prices remain above $4 per gallon and used EV values show higher appreciation than non-EV values,” said Robb. “It’s going to be an interesting year observing the valuations and sales pace of used EVs as the market sniffs out consumer demand elasticity with the fluctuations in gas prices.”
Total used-vehicle inventory clocked in at 1.95 million at the end of March. This number is 5.9% lower than it was last year and down 8.3% from February’s 2.13 million. Today’s used car market continues to suffer from constrained inventory. Manufacturers made 8 million fewer new vehicles from 2020 to 2022 due to COVID-19 supply disruptions. Unable to find a new car to buy or lease during that time, many buyers bought used cars instead, tightening the supply of used vehicles. With fewer leases in that timeframe, the used-vehicle supply will be lower for several years to come.
The latest Cox Automotive days’ supply report shows that the used-vehicle supply was 37 days at the start of April. This number was down seven days from the revised February report level, and down two days from the same time last year. Supply remains tight compared to recent years and is getting tighter as demand for used vehicles increases. The March reading was the lowest level we’ve seen since 2021.
RELATED: Used Car Buying Guide
How Much Does a Used Car Cost?
The average used car listing price was $25,390 at the start of April, up less than 1% from the same time in 2025 and up 0.7% from February’s $25,209.
While average prices are remaining relatively steady, those looking for very affordable vehicles continue to see limited options. Used cars priced below $15,000 are showing only a 27-day supply — 11 days below the overall average for the industry. The top five sellers in February were once again Ford, Chevrolet, Toyota, Honda, and Nissan, accounting for nearly 51% of all used vehicles sold. Together, their sales had an average listing price of $23,861, which was nearly 6% below the average listing price for all used vehicles sold.
Buyers who aren’t paying in cash will need to finance their purchase. Consumer car loan interest rates have remained high for 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. If you are in the market for a used car right now, narrow your search by filtering cars for sale by owner, at a dealership, or in a certain price range.
Data show that sales of certified pre-owned (CPO) vehicles were down 11.2% year over year in March, though they were up 9.2% month over month. March’s CPO sales are estimated at 221,840, up from 203,086 in February. CPO sales continue to outperform the broader new-vehicle market. CPO vehicles are typically lower-mileage cars in excellent condition, sold with the manufacturer’s backing. With an extra warranty, certified pre-owned vehicles can be a good deal, especially if they come with special financing and low down payments.
“As new car prices rise, considering an older used car can be a smart move,” said Autotrader senior editor Chris Hardesty. “If you do careful research and find a solid, reliable model, it should last many years.”
RELATED: What Is a Certified Pre-Owned Car?
Pros and Cons of Buying a Used Car This Month
| Pros | Cons |
| ✔ On average, used cars are selling at about half the cost of new vehicles, though inventory does remain constrained. If you find a vehicle that matches your needs, it could be wise to jump on it now. | ➖ Waiting for lower car loan interest rates in the months ahead may make sense if you need to finance your used car purchase. However, there’s no telling if car loan interest rates will decline. |
| ✔ New cars quickly depreciate once driven off the lot, making buying used a smarter idea any month of the year. | ➖ Buying a newer-model used car can be more expensive than buying a new one in some instances. |
| ✔ Insuring a used car costs less than insuring a new vehicle in most cases. | ➖ Dealing with a lack of inventory may mean you can’t find the car you want in the color or trim 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 vehicle for your budget.
- Research used car models to find the best deals 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.
- 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 may find some good deals before the used car inventory becomes even tighter. That said, 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. Research before deciding to buying used, and if it’s a newer used vehicle, be sure to check the prices of new models and compare costs.
Editor’s Note: We have updated this article since its initial publication.
My grandson just perchased a 2016 Kia on Facebook market place. Beautiful car like new inside but uses four quarts of oil per ten/fifteen gallons of gas
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?
You can ask anything. The President isn’t hurting consumers, he’s actually helping them. Many manufacturers have announced that they’re moving production into the US which will result in more American jobs and tax revenue. We shouldn’t question him to stop it, we should question him why he’s not moving faster.
consumers barely can afford prices now. He isn’t helping anyone
no ones going work those jobs.
stop living in fancy land he’s destroying our economy and making his friends rich