Used-vehicle prices are getting so high that some models are approaching new-car levels.
A Carfax study found that the average used-vehicle price has reached its highest point in a year and a half to nearly $25,000, or about $1,300 more.
The vehicle data and listings provider researched its listings from September and October to uncover the phenomenon. Limited used inventory is driving the price inflation, said Carfax, which indicated supply is still under prepandemic levels due to a drop in new-vehicle sales during the peak Covid period.
“It’s rare for used and new car values to be this close,” said Carfax Editor in Chief Patrick Olsen.
Though vehicles generally lose 40% of their value after three years of ownership, Carfax determined that some well-selling models’ 2023 units are listed at prices within about 10% of their new 2025 counterparts. They include the Honda Civic and the Ford Bronco, Kia Seltos and Toyota Corolla Cross SUVs.
Taking the Civic as an example, Carfax calculates that the average price of a 2023 unit is at $24,300, compared to $27,400 for a 2025 Civic, translating to just a $25 monthly payment difference for buyers making a 10% down payment and financing over 72 months.
The company said automakers and dealers are offering consumers financing deals to juice new-vehicle buying in the inflated economy.
