There was a glimmer of hope less than a year ago when used car prices started falling. While they remained high above pre-pandemic levels, prices were on a downward trend.
However, over the last several months, used car prices have increased once again. The average price of a one- to five-year-old used car is now 3.7 percent more in July 2025 than it was in July 2024.
According to a new iSeeCars study, prices have been increasing since March, rising 1.0 percent year-over-year for that month. They jumped by 1.8, 2.9, and 4.8 percent in April, May, and June, respectively, after having steadily declined for two and a half years. Comparitively, used car prices decreased by 4.8 percent in August 2024 compared to August 2023, with the average used car costing just $30,228.
Topping the list of used cars that have seen the highest price increases is the BMW 4 Series, which jumped by 30 percent year-over-year by a whopping $9,370. The Porsche Cayenne (22.3 percent) and Land Rover Discovery (20.4 percent) were second and third, respectively.
Month
Average Price
$ Year-Over-Year
% Year-Over-Year
July
$31,770
$1,146
3.7%
June
$32,437
$1,497
4.8%
May
$32,317
$630
2.0%
April
$32,231
$559
1.8%
March
$31,624
$317
1.0%
February
$31,257
-$239
-0.8%
January
$31,731
-$250
-0.8%
Overall, prices climbed to $31,770 in July, with customers paying about $1,200 more for a car than they would have the year before. iSeeCars Executive Analyst Karl Brauer pointed to a combination of high new car prices and tariff uncertainty, which is increasing demand for both new and used vehicles, raising prices for everyone as affordable used cars disappear from the market. Brauer notes:
‘Consumer demand for used cars remains strong, outstripping supply and driving prices up for five months in a row. For buyers waiting to get a deal on used cars, it appears they waited too long if they didn’t buy before March.’
Used EV Prices Stabilize
If you’re looking for a good used deal, you might consider an electric vehicle. Prices continue to drop for that segment, although they are stabilizing. EV prices were down just 1.3 percent in July after falling 4.8 percent in June, 8.8 percent in May, and 10.1 percent in March. It’s a dramatic shift from August 2024, when used EV prices were down 24.7 percent year-over-year.
Tesla models continue to lose the most value, with the Model S, X, and Y taking the top three spots for the most significant price drops. Prices for the three were down over 12 percent in July.
iSeeCars analyzed over 1.5 million one- to five-year-old used cars sold in July 2024 and July 2025 and compared the average listing prices.
