The average used car buyer paid $25,128 in January, down from $25,780 at the start of the year and down about 2% from January of last year.
Used-vehicle listing prices typically decline in the first month of the year, with this year’s decline slightly smaller than we have seen in the previous two years.
Tax Refund Season Starting a Surge
Tax refund season typically triggers a surge in used car shopping. Shoppers will have slightly fewer choices than normal this year. The total supply of used vehicles on U.S. dealer lots — franchised and independent — was 2.23 million units, up from 2.22 million units at the start of January but down 3% from a year ago.
The data come from Kelley Blue Book parent company Cox Automotive.
Sales are already picking up. Americans bought 1.41 million used cars during January, up from 1.34 million in December.
Supply Lower Than Normal
Supply is likely to remain below normal for much of 2025. Automakers built about 8.1 million fewer cars during the COVID-19 pandemic than they otherwise would have. Those unbuilt cars will never reach the used market, constraining supply for years to come.
Inexpensive Used Cars Hardest to Find
The cheapest used cars remain the hardest to find. Dealers ended the month with just a 35-day supply of the older, higher-mileage used cars they sell for under $15,000. They had a 46-day supply of the average used car.
The top five sellers of the month were listed at an average price of $23,516, about 6% below the average listing price for all vehicles sold. Ford, Chevrolet, Toyota, Honda, and Nissan were the top-selling brands, accounting for 51% of all used vehicles sold.