Quick Facts About Buying a Used Car
- The average used-car listing price in July rose to $27,028, an increase of only $12 from June’s revised $27,016. While prices saw a run-up in the spring, they appear to have plateaued for the moment.
- Used-vehicle inventory continues to recover from March’s record-low 37-day supply, rising to 46 days’ supply in July, but it remains tight.
- Used cars in August and September remain a solid value proposition if you can find one that meets your needs, given constrained inventory. Options under $15,000 are scarce, representing only 16.4% of all used-car inventory.
Both new and used car prices stabilized in July, showing only slight increases. If you’re looking to jump into the used vehicle market this summer, be aware that demand is high and supply remains tight. Typically, the summer months see a sales slowdown, but July saw a slight 0.6% bump in the used vehicle market.
While conditions haven’t shifted radically, tight inventory means some buyers should move forward with a used-car purchase sooner rather than later. In particular, those looking for a used vehicle under $15,000 will have the most trouble finding a satisfactory option. These vehicles now represent only 16.4% of all used-car inventory. Given increasing economic pressures on the average buyer, if you find a vehicle that suits your needs, it might be prudent to move quickly.
Many factors can influence whether it’s a good time to buy a used car, including inventory, credit availability, and loan interest rates. The tight supply of used vehicles could make it difficult to find exactly what you want. Also, interest rates on used-vehicle loans are higher than rates on new-car loans. If you’re wondering if now is the time to buy used, here’s what you need to know about the current state of the market.
- Used Car Market Overview
- How Much Does a Used Car Cost?
- EV Perspective
- Pros and Cons of Buying a Used Car
- Tips for Buying a Used Car in Today’s Market
- Bottom Line
Used Car Market Overview
At the start of 2026, Cox Automotive economists predicted a modest sales decline for the year due to economic pressures and constrained supply. Cox Automotive is Autotrader’s parent company. In March, we saw an improved sales pace — a typical seasonal pattern fueled by healthy tax refunds and affordability challenges in the new-vehicle market — and while sales softened in the following months, July sales were up 0.6% month over month. Year over year, however, sales declined 2.2%.
A start-of-summer slowdown is typical, but July’s month-over-month increase outperformed seasonal trends, suggeting that underlying demand remains resilient. Used vehicles continue to provide a strong value proposition relative to new ones. Unchanged from June, the top-selling brands in July were Ford, Chevrolet, Toyota, Honda, and Nissan, accounting for nearly half of all used vehicles sold.
“Wholesale values kept normalizing through July, continuing the pattern since the spring bounce peaked in March,” said Cox Automotive Senior Director Jonathan Gregory about July’s Manheim Used Vehicle Value Index. “Off-lease maturities kept building. These are a healthy source for dealers’ late-model inventory, but also adding to the depreciation pressure we’re watching into the fall.”
The war in the Middle East continues to create uncertainty about fuel prices, and broader economic pressures continue to affect the average household. “The bigger picture is still affordability. Compact cars remain the strongest performer year over year, and the softness we’d confined to SUVs and pickups has spread into midsize cars too,” Gregory said.
These same pressures have sparked a renewed interest in used EVs. “Gas prices reversed course and moved higher again as July went on after briefly easing in June,” said Gregory. “That’s kept demand for used EVs firm even as the broader market cools.”
Total used-vehicle inventory reached 2.145 million at the end of July. This was up 0.8% year over year and 0.2% from June. Today’s used car market continues to suffer from constrained inventory. 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 instead bought used cars, tightening the supply of used vehicles. With fewer leases during that timeframe, the used-vehicle supply will remain limited for several years. Supply remains well short of the approximately 2.4 million vehicles on dealer lots in July 2022.
The latest Cox Automotive days’ supply report shows that the used-vehicle supply was 46 days in July. This number was unchanged from June’s revised 46 days, and up one day on a year-over-year basis. A 0.6% increase in sales pace coincided with a 0.2% uptick in inventory volume, resulting in a 0.3% decrease in days’ supply. While supply held steady month to month from June, it remains generally tight compared with historical trends as demand for used vehicles remains resilient.
RELATED: Used Car Buying Guide
How Much Does a Used Car Cost?
The average used-car listing price in July was $27,028, up 6% from the same period in 2025 and up only $12 from June’s revised $27,016. June and July represent the first time the average has moved above $27,000 since summer 2023. Despite this run-up, prices do appear to have leveled off for the time being.
Listing prices increased across every age group year over year, and a larger share of newer vehicles pushed prices higher. Older vehicles typically cost less, but shoppers seeking one under $15,000 have an uphill battle, as options are limited. Prices for that price segment are rising as well, up 13.9%. Inventory in the lowest-priced segments remains scarce at 32.2 days’ supply in July, significantly below the overall market average of 46 days. Supply in this price band fell 20% year over year, and now accounts for only 16.4% of all used-vehicle inventory.
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.
Sales of certified preowned (CPO) vehicles in July increased 6.6% month over month, but were essentially flat year over year. July’s CPO sales are estimated at 223,697, up from 209,800 in June. CPO sales continue to outperform the broader used-vehicle market. CPO vehicles are typically low-mileage cars in excellent condition and backed by the manufacturer. With an extra warranty, certified preowned vehicles can be a good deal, especially if they come with special financing or low down payments.
“As new car prices rise, considering an older used car can be a smart move,” said Chris Hardesty, Autotrader senior editor. “If you do careful research and find a solid, reliable model, it should last many years.”
RELATED: What Is a Certified Pre-Owned Car?
EV Perspective
Used electric vehicle (EV) sales saw a boost in July, with an estimated 36,910 units. This was up 7.9% month over month and up 10.1% year over year, with EVs accounting for a steady 2.4% of total used vehicle sales. Tesla continued to lead the pack, but Ford, Chevrolet, Nissan, and Cadillac also posted strong gains. Ford saw a 18.9% month-over-month sales increase.
Inventory levels for used EVs continued to loosen in July. Days’ supply rose to 46, up 14.6% month over month and up 13.6% year over year. Used EV days’ supply moved above ICE+ vehicle supply for the first time since February, though the gap remains narrow at only three days.
The average listing price for a used EV in July was $37,832, down 1.2% month over month but up 8.3% year over year. Though prices saw a small decline, sales of used EVs continue to outpace the broader used-vehicle market, and prices are increasing faster than those of ICE+ vehicles.
“Used EV prices remained well above year-ago levels [in July 2026], reflecting a growing share of newer-generation EVs entering the used market,” said Cox Automotive Director of Industry Insights Stephanie Valdez Streaty. EV sales continue to outpace year-ago levels. More off-lease returns and trade-ins are coming in, expanding used-EV availability. While historically dominated by Tesla models, other manufacturers are beginning to find their footing, and buyers have more options than ever as models from other brands begin to make their way into the used market.
Pros and Cons of Buying a Used Car This Month
| Pros | Cons |
| ✔ On average, used cars are selling at a little over 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 may make sense if you need to finance your purchase. However, there’s no certainty about when rates will decline. |
| ✔ New cars quickly depreciate once driven off the lot, making a used car a potentially better value. | ➖ Buying a newer-model used car can sometimes cost more than a comparable new one. |
| ✔ Insuring a used car costs less than insuring a new vehicle in most cases. | ➖ Limited inventory may mean you can’t find the car you want in your preferred color or trim. |
Tips for Buying a Used Car in Today’s Market
With several factors impacting the purchase of a used car, use these tips to find the right vehicle for your budget.
- Research used car models to find the best deals from dealerships and private sellers.
- Ask for a 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 preowned manufacturer offers and other deals.
- Obtain quotes for car insurance before buying.
- Avoid signing any sales agreement before seeing a cost breakdown of all charges.
Bottom Line
Used car inventory continued to improve in July, but it’s still tight, especially compared with the new vehicle market, and prices were essentially flat month over month. However, used vehicles remain an affordable alternative to new ones. Given inventory constraints, you might not find the exact vehicle you want. Consider your personal circumstances when deciding whether it’s the right time for you to 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 Car Buying Information Center for curated articles, resources, and tools to guide your shopping journey.
Editor’s Note: We have updated this article since its initial publication.
Excellent article! Buying a used car can be a smart financial decision, but only if you do your homework. A thorough vehicle history check, complete service records, a detailed test drive, and an independent pre-purchase inspection can help you avoid costly surprises. Mileage is important, but the overall condition and maintenance history matter even more. Thanks for sharing such practical advice for anyone considering a used car purchase!
Drifolio has made buying and owning used vehicles a lot easier for me because it keeps maintenance records, receipts, mileage history, and ownership history organized in one place.
One thing I think buyers underestimate is how important maintenance history becomes when inventory is tight and prices are elevated. Two vehicles can look identical on a listing site, but the one with documented oil changes, repairs, tire replacements, and service records is usually the safer purchase.
The article is right to emphasize checking vehicle history and maintenance records. A lot of people focus on mileage and forget that how a vehicle was maintained often tells a much bigger story.
Whether you’re buying from a dealer or a private seller, I’d rather see complete service records than hear someone say, “Trust me, it’s been maintained.”
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
Nancy, You are so misguided! Our economy is booming. Just look around. I live in Canton Ohio. I have driven by the Canton/Akron airport for years. The parking lot was always half full. There was grass growing on it and now the lot is always full and they are paving it. Another example: I stopped at the library and the librarian told me she now spends all day getting passports for people. If you cannot get a job now there is something wrong with you! What jobs are you referring to when you say no one will take those jobs? He is making everyone better not just the rich. The middle class are doing so well. Border is secure and taxes are lower. I could go on and on with other examples.