Used Car Market Surge

Surprising Trends in Pre-Owned Cars

Alright, let’s dive into some interesting stats about used cars that might surprise you. According to the latest from Edmunds, the average price for a three-year-old used car has jumped past $30,000. This isn’t a shock given the car market these days, but it does make used cars pricier and narrows the price gap with new cars to less than $17,000. Much of this can be credited to the tariffs on foreign models, which are shaking up resale values differently depending on the brand and model.

The landscape for leases has shifted, too. Over the past couple of years, fewer cars were leased, thanks largely to decreased lease rates through 2022 and 2023. At the same time, there were fewer cars on dealer lots because automakers faced supply chain shortages, meaning new car prices kept climbing. Many decided to buy out their leased cars instead of leasing again, and now dealers are hungry for returns. The hunch from Kelley Blue Book is that this trend will continue, shifting the dynamics for dealers and consumers alike.

How Old is Old?

Trade-ins are aging like good wine, with the average age hitting 7.6 years in the first quarter of 2025, according to Edmunds. Compare that to last year’s 7.3 years, and it’s the oldest average recorded since 2019. The age of cars uploaded on Edmunds also ticked up recently, which means people are holding onto their rides longer before trading them in. Prices are climbing, too — a three-year-old car now averages $30,522, up 2.3% from $29,844 last year. Throw tariffs into the mix, and American vehicles are seeing higher transaction prices by as much as $6,853, says Edmunds.

Think American-made cars are a bargain compared to those made overseas? Think again. Cars.com data says American cars averaged $53,000 in Q1 2025, while those from China were slightly less at $51,000. Up north, Canadian-made vehicles stood around $46,000 and our southern neighbor Mexico clocked in at about $40,000. These prices reflect a market influenced by tariffs and the popularity of bigger vehicles like trucks and SUVs. The whispers from Kelley’s experts? There’s more volatility in the wind for the used car market, so brace for more pricing shifts soon.

Why Trade-It’s a Good Time

If sitting on a used car right now, it might be an excellent time for a trade-in. With the prices climbing and tariffs introducing less predictability, there’s a solid chance to swap for something newer. The market favors those riding out their leases, as they might see some positive equity to put towards the next car. The assembly location is also becoming more critical in resale value than ever before. In this unpredictable market, keeping an eye on these factors could make a significant difference when pulling the trigger on that next deal.