Used Car Prices in the U.S. Hit Highest Levels Since the COVID Pandemic

In the U.S., used car prices are once again breaking records. The average price for a three-year-old vehicle has topped $30,000, and experts are pointing to some unusual trends in the market. Buyers are being more cautious, while dealers report longer times to sell their inventory.

On November 14, 2025, the American automotive market was once again in the spotlight. Prices for used cars surged, reaching levels not seen since the height of the microchip shortage during the pandemic. In the third quarter of 2025, the average cost of a three-year-old car exceeded $31,000, up 5% compared to the previous year — the highest figure in three years.

According to the Detroit Free Press, used cars are staying on dealer lots longer. Experts point to economic challenges facing many Americans as the main reason. A significant number are opting out of new car purchases, either choosing more affordable options or postponing upgrades altogether.

Interestingly, at the end of 2021, the average price of a used car first surpassed the $30,000 mark. It held steady around that level until the third quarter of 2023, when there was a slight dip. By fall 2025, prices had climbed again — even though the microchip shortage is no longer as severe as it was during the pandemic.

Experts also note that buyers have become more selective, carefully comparing options before making a purchase. Many will only consider buying if there are special promotions or discounts available. But given the rising costs across the board — including vehicles — most people are choosing to hold onto their current cars rather than risk big-ticket purchases.

As a result, dealers are facing challenges. Used cars are selling more slowly, and buyers are increasingly taking a wait-and-see approach. With economic uncertainty and concerns about a potential downturn, many Americans are cutting back on major spending, which is driving the continued rise in used car prices and making the market less profitable for sellers.