Used Car Prices Hit 2023 Highs Despite War and Gas Prices
Summary:
- Used car prices rose to their peak since summer 2023, with an average listed price of $25,287 while new cars average over $49,100.
- Days' supply of used vehicles dropped below 40 in March - the lowest point of 2026 - indicating tight inventory.
- Cox expects 20.4 million used vehicles to sell in 2026, with wholesale prices forecast to rise about 2% this year.
Used car prices just hit their highest point since summer 2023, averaging $25,287. New cars cost over $49,100 - so buyers turn to used vehicles.
Demand Stays Strong Despite High Gas Prices
High gas prices haven't killed demand. Instead, demand stays strong because new cars cost twice as much. Buyers pick the cheaper option.
Days' supply fell below 40 in March - the lowest of 2026. Tight inventory plus steady demand equals rising prices.
Cox forecasts 20.4 million used vehicles will sell in 2026, with wholesale prices rising about 2%.
Electric Vehicles Gain an Edge
One winner: electric vehicles. Gas at $4.50 per gallon makes an EV that costs more upfront look smarter over time.
What to Watch
Used car prices signal consumer behavior. When used cars hold value while new cars stay expensive, people still have money and still need cars. If used prices fall, consumers are tapping out.
