The prices of used cars in the United States experienced sharp fluctuations last year before stabilizing. It is expected that they will continue to rise slightly in 2025.

After several years of dramatic fluctuations, used car prices in the United States began to settle down in 2024, and are expected to continue to stabilize in 2025. Automotive data and logistics company Cox Automotive predicts that its Manheim Used Vehicle Value Index will end the year with wholesale prices 1.4% higher than in December 2024. The index tracks the prices of used cars sold at its wholesale auctions in the United States. Cox states that prices may fluctuate on a monthly basis due to seasonal sales and other factors, but are not expected to experience the same dramatic changes as in previous years. During the peak of the pandemic, prices surged, with the index for used car prices rising to historical highs of 46.6% in 2021 and 14.2% in 2020. In contrast, due to the surges in the previous two years, prices dropped by 7% and nearly 15% in 2023 and 2022, respectively. The increase in 2024 was 0.4%. During this period, disruptions in the supply chain and parts shortages led to record-low availability of new cars. The Biden administration noted that the rise in used car prices was a key factor in inflation at the time. The overall stability in prices is a win for potential car buyers. However, used car prices are still higher than they were before the pandemic. Consumer retail prices typically follow changes in wholesale prices, but in recent years, their decline has not been as rapid as wholesale prices. Jeremy Robb, Senior Director of Economics and Industry Insights at Cox Automotive, stated in a conference call on Wednesday, "We are winding down some of the actions brought on by the pandemic. Our forecasts are definitely going to see some fluctuations." Data from Cox Automotive since 1997 shows that the average year-end increase in the index is 2.3%; however, this does not include the two abnormal years of 2021 and 2022. Cox states that the regular monthly fluctuation in the index throughout the year is only 0.2%. According to Cox's report, in early December of last year, the average asking price for a used car was $25,565, slightly higher than the previous month's $25,493, but a 3% decrease from the same period the year before. Based on Cox Automotive's data, it is expected that by 2025, the sales of used cars in the United States will increase by 1% compared to the previous year, reaching 37.8 million vehicles. This forecast includes 20.1 million units of used car retail volume, an increase of 1.2%.