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.
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%.
One winner: electric vehicles. Gas at $4.50 per gallon makes an EV that costs more upfront look smarter over time.
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.
