Used Car Prices Rise Slightly Despite Record-Low Inventory in March 2025

Few products reflect the laws of supply and demand as clearly as new and used cars. Yet the used car market in March 2025 defied expectations, showing only a modest price increase despite a sharp drop in inventory.

According to Cox Automotive, the average listing price for a used vehicle in March 2025 was $25,390, a rise of just 0.7% compared to February. While seasonal trends typically see prices rise in March due to tax refund spending, analysts noted that high new-vehicle prices continue to push buyers toward the used market.

The result is a used car inventory at its lowest level since 2019, with 1.95 million used cars on dealer lots—a 5.9% decline from March 2024. Scott Vanner, manager of economic and industry insights at Cox Automotive, explained:

"The retail used-vehicle sales pace was strong in March, but lower by 2.9 percent compared to a year ago. Used retail sales volume in March is estimated at 1.62 million vehicles, up from the 1.37 million in February and at the highest level in a year. The daily sales pace in March was higher versus February by 7 percent."

Inventory Shortages Worst for Sub-$15,000 Market

Supply constraints are most severe in the sub-$15,000 segment, where inventory now sits at just a 27-day supply—11 days below the average.

Buyers Prioritize Affordability Over Security

Data shows consumers are prioritizing price over other factors. The average price of the top five selling used cars was $23,861, 6% below the overall used vehicle average. Meanwhile, certified pre-owned (CPO) sales fell 11.2% year-over-year to an estimated 221,840 units in March, though they rose 9.2% from February. CPO’s share of total used-vehicle sales dropped to 13.7% from 14.7% in February, suggesting buyers are sacrificing long-term reliability for immediate savings.