- The average used car price rose by $185 during the month
- Dealers had been paying lower prices at auction, but sales picked up, reducing supply
The average used-car buyer in America paid $25,527 in July, up from a revised $25,342 in June but nearly unchanged from a year ago.
The numbers come from Kelley Blue Book parent company Cox Automotive. Cox Automotive also operates vAuto, a software provider that powers the operations at many car dealerships.
Dealers have been paying lower prices for used cars at auction this summer — a factor that pushes prices down over time.
Related: Is Now the Time to Buy, Sell, or Trade in a Car?
However, sales are picking up, with Americans buying 9% more used cars in July than in June.
That has kept the nationwide supply of used cars low. Dealers ended July with an average of just 43 days’ supply, well below their common target of 60.
Automakers built about 8.1 million fewer cars during the height of the COVID-19 pandemic than they would have without factory shutdowns. Those cars will never reach the used market, suppressing supply for years to come.
Tariffs May Start to Play a Role
- Used car prices rise when new car prices rise
- Automakers warn they can’t hold off tariff-related price increases forever
Tariffs may also be playing a role. Tariffs threaten to push new car prices higher. When new car prices rise, used car prices rise, as would-be new car buyers turn to the used market to find something more affordable.
New car prices have not risen dramatically in the early months of President Trump’s tariff policy. Automakers and dealers have been offering aggressive discounts to keep the impact of tariffs away from sticker prices.
But automakers have begun warning that they can’t absorb the hit for long. New car prices may rise as trade agreements lock in tariff rates for the long term and 2026 models begin arriving on dealer lots.
Used cars priced below $15,000 continue to be hard to find. Dealers ended July with only 31 days’ supply of those.
The top five sellers of the month were listed at an average price of $23,838, almost 7% below the average listing price for all vehicles sold. Ford, Chevrolet, Toyota, Honda, and Nissan accounted for 51% of all used vehicles sold.
