Quick Facts About Buying a Used Car
- May/June 2026 remains a good time to buy a used car as new-vehicle prices continue to show year-over-year increases
- The average used-car listing price in April rose to $26,342, up both month over month and year over year.
- Used-vehicle inventory recovered slightly from March’s record low 37-day supply to 43 days’ supply in April, but it remains tight.
New car prices continue their steady climb, and would-be buyers are increasingly turning to the used market, boosting demand and keeping supply tight. Last year saw stronger-than-expected used-car sales, though Cox Automotive experts continue to predict a slight decline in 2026. True to typical seasonal patterns, March sales this year outperformed 2023 and 2024, though not last year’s, which saw a tariff-announcement-driven surge. Heading into April, that pattern began to moderate, with cooling sales.
Prices are seeing a small but steady uptick, and inventory remains constricted. While conditions haven’t shifted radically, tight inventory suggests buyers should move forward with a used-car purchase sooner rather than later. However, many factors can influence whether it’s a good time to buy a used car, including available inventory and loan interest rates. The aforementioned tightening supply of used vehicles could make it difficult to find exactly what you want. Also, interest rates on used-vehicle loans are higher than those on new-car loans. Still, there are plenty of benefits to buying a used car right now.
- Used Car Market Overview
- How Much Does a Used Car Cost?
- Pros and Cons of Buying a Used Car
- Tips for Buying a Used Car in Today’s Market
- Bottom Line
Used Car Market Overview
In April, an estimated 1.43 million used retail vehicles were sold, down from March’s high of 1.64 million. The daily sales pace was down 10% in April compared with March. This slowdown was expected, as March is typically the strongest month for used-vehicle sales. This April’s sales were significantly lower than a year ago, but that comparison gives a skewed picture due to tariff-announcement-driven sales surges. April’s sales outpaced 2024 and 2023 levels, and demand remains strong. Continuing high costs in the new-vehicle space make a healthy value proposition for used vehicles relative to credit availability contribute to this demand.
At the start of 2026, Cox Automotive economists predicted a modest sales decline for the year due to economic pressures and constrained supply. March saw an improved sales pace — a typical seasonal pattern fueled by healthy tax refunds and a challenging affordability landscape in the new-vehicle market — but sales pace again declined in April to 1.43 million, down from March’s 1.64 million and 6.5% lower year over year.
“The spring bounce buoyed the market, as a stronger tax refund season drove dealer demand earlier in the year,” said Cox Automotive Chief Economist Jeremy Robb. “While the index is now down from its near-term peak in March, depreciation trends have remained muted versus normal seasonal trends.”
With no end to the war in the Middle East in sight, fuel prices have continued to increase, as have other economic pressures. “Nationwide, gas prices have been holding at $4.50 or higher since May 6th. Inflation trends have also been creeping up and may begin to eat into consumer spending appetites as we move into early summer,” said Robb.
These pressures have sparked renewed interest in used EVs. “We continue to see EV prices rising faster and holding higher than non-EVs. Three-year-old EV prices have outpaced non-EVs for six weeks in a row and are 11% higher than where they started the year,” said Robb. “The longer gas prices remain elevated, the more we expect consumers to turn to fuel-efficient vehicles. As EV lease maturities continue to increase throughout the summer, it will be critical to follow EV price trends—especially if the Middle East conflict remains unresolved.”
Total used-vehicle inventory clocked in at 2.04 million at the end of April. This number is 4.8% lower than it was last year but up from March’s record low. April’s numbers remain among the lowest readings on record since 2019. Today’s used car market continues to suffer from constrained inventory and rising demand. Manufacturers made 8 million fewer new vehicles from 2020 to 2022 due to COVID-19 supply disruptions. Unable to find a new car to buy or lease during that time, many buyers bought used cars instead, tightening the supply of used vehicles. With fewer leases in that timeframe, the used-vehicle supply will be lower for several years.
The latest Cox Automotive days’ supply report shows that the used-vehicle supply was 43 days at the start of May. This number is up six days from March’s 37, and up one day year over year. Supply remains tight compared to recent years and is getting tighter as demand for used vehicles increases. However, though the March reading was the lowest level we’ve seen since 2021, April saw an easing of the sales pace, allowing for some inventory recovery.
RELATED: Used Car Buying Guide
How Much Does a Used Car Cost?
The average used-car listing price in April was $26,342, up less than 3.0% from the same period in 2025 and up 3.5% from March’s $25,370. Used EV listing prices increased 4.2% month over month.
While average prices are remaining relatively steady, those looking for very affordable vehicles continue to see limited options. The top five sellers in April were once again Ford, Chevrolet, Toyota, Honda, and Nissan, accounting for nearly 50% of all used vehicles sold. Together, their sales had an average listing price of $24,511, which was nearly 7% below the average listing price for all used vehicles sold.
Buyers who aren’t paying in cash will need to finance their purchase. Consumer car loan interest rates have remained high for the past several years, making it harder to afford a used car. Use our car affordability calculator to see what you can buy within your budget. If you are in the market for a used car right now, narrow your search by filtering cars for sale by owner, at a dealership, or in a certain price range.
Data show that sales of certified pre-owned (CPO) vehicles were down 7.3% year over year in April and up 3.5% month over month. April’s CPO sales are estimated at 215,320, down from 223,104 in March. CPO sales continue to outperform the broader new-vehicle market. CPO vehicles are typically lower-mileage cars in excellent condition, sold with the manufacturer’s backing. With an extra warranty, certified pre-owned vehicles can be a good deal, especially if they come with special financing and low down payments.
“As new car prices rise, considering an older used car can be a smart move,” said Autotrader senior editor Chris Hardesty. “If you do careful research and find a solid, reliable model, it should last many years.”
RELATED: What Is a Certified Pre-Owned Car?
Pros and Cons of Buying a Used Car This Month
| Pros | Cons |
| ✔ On average, used cars are selling at about half the cost of new vehicles, though inventory remains constrained. If you find a vehicle that matches your needs, it could be wise to jump on it now. | ➖ Waiting for lower car loan interest rates in the months ahead may make sense if you need to finance your used car purchase. However, there’s uncertainty regarding when car loan interest rates will decline. |
| ✔ New cars quickly depreciate once driven off the lot, making buying used a smarter idea any month of the year. | ➖ Buying a newer-model used car can be more expensive than buying a new one in some instances. |
| ✔ Insuring a used car costs less than insuring a new vehicle in most cases. | ➖ Dealing with a lack of inventory may mean you can’t find the car you want in the color or trim you want. |
Tips for Buying a Used Car in Today’s Market
With several factors impacting used-car buying, use the tips below to find the right vehicle for your budget.
- Research used car models to find the best deals from dealerships and private sellers.
- Ask for the vehicle history report to learn about its maintenance and any accidents.
- Check the used car’s Kelley Blue Book value from our sister site to see if it’s a good deal.
- Get the best offer on your trade-in by shopping it around.
- Compare rates for your used car loan before settling on financing.
- Set your budget and use our car affordability calculator to determine what works best for you.
- Look for certified pre-owned manufacturer offers and other deals.
- Obtain quotes for car insurance before buying.
- Avoid signing any dealership sales agreement before seeing a cost breakdown of all line items.
Bottom Line
You may find some good deals before the used car inventory becomes even tighter. That said, it might not be the exact vehicle you want. Always consider your personal circumstances when deciding whether it’s the right time for you to make the leap and buy a car. Research before deciding to buy used, and if it’s a newer used vehicle, be sure to check the prices of new models and compare costs.
Visit Autotrader’s Buying Hub Page for articles, resources, and tools you need in your shopping journey.
Editor’s Note: We have updated this article since its initial publication.
My grandson just perchased a 2016 Kia on Facebook market place. Beautiful car like new inside but uses four quarts of oil per ten/fifteen gallons of gas
Can someone explain the annual dip in Days of Supply that appears to bottom out each March?
How much impact does that have on the price of used cars?
Finally, should prospective buyers wait a month for those numbers to recover before buying or is that likely to be when prices become affected by tariffs?
Thanks for reading, Darrel. The dip is all about tax refund season. Tax refunds drive the highest demand of the year because buyers have more money to use as a down payment. More money in consumers’ pockets means more demand soaking up supply. In general, supply rises after tax refund season for the rest of the year. Last year, sales stayed higher than normal through December, so dealerships didn’t get to ‘rebuild’ supply as much as usual and we started off 2025 lower than we normally do.
Wholesale prices usually rise due to tax refunds, and impact retail prices with a 4-6 week delay. February and March often see lower retail prices because dealers bought cars in December when prices are lowest. Tariffs could further increase used retail prices.
My comments are:
Can we ask why is this president hurting consumers ?
Can organizations question the president ti stop this?
You can ask anything. The President isn’t hurting consumers, he’s actually helping them. Many manufacturers have announced that they’re moving production into the US which will result in more American jobs and tax revenue. We shouldn’t question him to stop it, we should question him why he’s not moving faster.
consumers barely can afford prices now. He isn’t helping anyone
no ones going work those jobs.
stop living in fancy land he’s destroying our economy and making his friends rich