CARFAX Reports Spike in Used Car Prices As Market Dynamics Shift to Favor New Models
In a recent report by CARFAX, it has been revealed that the average used car price has reached its highest level in 18 months, nearing $25,000. This represents a significant increase of approximately $1,300 compared to a year and a half ago, which underscores the evolving dynamics of the automotive market.
What's particularly noteworthy is the narrowing price gap between certain used car models and new vehicles. Typically, you’d expect a three-year-old car to depreciate by about 40%, but some of the most popular models—including the Honda Civic sedan, Ford Bronco, Kia Seltos, and Toyota Corolla Cross SUVs—are now priced within just about 10% of their brand-new counterparts from 2025.
Patrick Olsen, Editor-In-Chief of CARFAX, remarked, "It's unusual for used and new car values to be this close. Potential buyers should research thoroughly and make swift decisions if they are in the market for a new vehicle; these pricing discrepancies may not persist."
The factors contributing to this tight market include a shortage of used car inventory, which has remained below pre-pandemic levels. The ripple effects of diminished new car sales during the pandemic have led to a reduced availability of used vehicles today. Furthermore, there has been an observed decline in consumer confidence, reaching its lowest point since April, which is influencing buying behaviors.
To entice buyers to opt for new vehicles, dealers and automakers are also rolling out fresh financing deals. With these market conditions, it becomes imperative for consumers to consider their options carefully.
1. Explore CARFAX Listings: Utilize CARFAX for an extensive array of new and used car listings. Each used vehicle comes with a complimentary CARFAX Report, which provides critical history information.
2. Analyze Prices: Don't automatically assume that used cars are the cheaper option at this time. If the price difference between a new vehicle and an older model is minimal, contemplate benefits such as lower mileage, enhanced features, full factory warranties, and reduced maintenance costs associated with new vehicles.
3. Inquire About Financing: Investigate various makes and models within your budget, and don’t hesitate to discuss financing arrangements, warranty coverage, and interest rates with dealerships.
Let’s put these statistics into a clearer perspective. For example, the average price of a 2023 Honda Civic is currently around $24,300, while a brand-new 2025 model is about $27,400. If a shopper puts 10% down and finances the purchase over 72 months, the payment differences are minimal:
This results in merely a $25 difference in monthly payments, but the new vehicle boasts three years of additional features, nearly no mileage, and a full factory warranty, making it a compelling option.
Data for this analysis was compiled from CARFAX Car Listings during September and October of 2025. For additional insights or interviews with CARFAX experts, please reach out to Em Nguyen at [email protected]
As part of SP Global Mobility, CARFAX provides innovative tools and resources to assist millions of people each day in confidently shopping for, buying, servicing, and selling used cars. Recognized as a leader in vehicle history since 1984, CARFAX has the world’s largest database of vehicle histories, contributing significantly to consumer knowledge in the automotive space. SP Global Mobility operates under SP Global, a major player in credit ratings, benchmarks, analytics, and efficiency solutions across various markets including automotive, energy, and commodities.
What's particularly noteworthy is the narrowing price gap between certain used car models and new vehicles. Typically, you’d expect a three-year-old car to depreciate by about 40%, but some of the most popular models—including the Honda Civic sedan, Ford Bronco, Kia Seltos, and Toyota Corolla Cross SUVs—are now priced within just about 10% of their brand-new counterparts from 2025.
Patrick Olsen, Editor-In-Chief of CARFAX, remarked, "It's unusual for used and new car values to be this close. Potential buyers should research thoroughly and make swift decisions if they are in the market for a new vehicle; these pricing discrepancies may not persist."
The factors contributing to this tight market include a shortage of used car inventory, which has remained below pre-pandemic levels. The ripple effects of diminished new car sales during the pandemic have led to a reduced availability of used vehicles today. Furthermore, there has been an observed decline in consumer confidence, reaching its lowest point since April, which is influencing buying behaviors.
To entice buyers to opt for new vehicles, dealers and automakers are also rolling out fresh financing deals. With these market conditions, it becomes imperative for consumers to consider their options carefully.
Tips for Shoppers in Today’s Car Market
1. Explore CARFAX Listings: Utilize CARFAX for an extensive array of new and used car listings. Each used vehicle comes with a complimentary CARFAX Report, which provides critical history information.
2. Analyze Prices: Don't automatically assume that used cars are the cheaper option at this time. If the price difference between a new vehicle and an older model is minimal, contemplate benefits such as lower mileage, enhanced features, full factory warranties, and reduced maintenance costs associated with new vehicles.
3. Inquire About Financing: Investigate various makes and models within your budget, and don’t hesitate to discuss financing arrangements, warranty coverage, and interest rates with dealerships.
Let’s put these statistics into a clearer perspective. For example, the average price of a 2023 Honda Civic is currently around $24,300, while a brand-new 2025 model is about $27,400. If a shopper puts 10% down and finances the purchase over 72 months, the payment differences are minimal:
- - A buyer with excellent credit would face monthly payments of roughly $372 for the used 2023 Civic with an average interest rate of 7%.
- - Conversely, the payment for a new 2025 Civic would be approximately $397 at a lower interest rate of 4.99% (according to Honda Financial Services).
This results in merely a $25 difference in monthly payments, but the new vehicle boasts three years of additional features, nearly no mileage, and a full factory warranty, making it a compelling option.
Data for this analysis was compiled from CARFAX Car Listings during September and October of 2025. For additional insights or interviews with CARFAX experts, please reach out to Em Nguyen at [email protected]
About CARFAX
As part of SP Global Mobility, CARFAX provides innovative tools and resources to assist millions of people each day in confidently shopping for, buying, servicing, and selling used cars. Recognized as a leader in vehicle history since 1984, CARFAX has the world’s largest database of vehicle histories, contributing significantly to consumer knowledge in the automotive space. SP Global Mobility operates under SP Global, a major player in credit ratings, benchmarks, analytics, and efficiency solutions across various markets including automotive, energy, and commodities.
Topics Auto & Transportation）
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