- Used car inventories among dealers is at the lowest level since 2021. Dealers have a 43-day supply of cars and trucks. Trade-ins are less frequent as people keep their vehicles longer and more people are shopping for used cars to avoid tariffs.
It’s a rough time to buy a used car.
As tariffs drive up the cost of new vehicles, people are increasingly hanging onto their cars and trucks for longer periods of time and turning to used options to save money when they do begin to hunt for a new vehicle. And that has resulted in the lowest inventory on used car lots since 2021.
Cox Automotive reports inventory levels are declining, with the average supply of used cars now standing at 43 days, five days lower than it was a year ago. Reduced supply and increased demand are also resulting in fewer incentives and firmer dealer pricing. The average used-vehicle listing price rose to $25,547, up from the revised $25,483 at the beginning of April.
If you’re looking for a car below $15,000, it’s even tougher, with only a 32-day supply of those vehicles.
Those prices are still lower than they were for the past few years and well below the price of a new car, but are expected to steadily increase in the months to come.
“2025 is going to be a roller coaster for this industry, and the market could be a lot more hair-raising in the months ahead,” said Jonathan Smoke, chief economist at Cox Automotive.
Tariffs aren’t the only thing impacting the used-car market. A pandemic hangover is starting to be felt by dealers. Rental car companies, where many used cars come from, cut back their inventories during the pandemic. Leases, which also supply the market, fell off during COVID years as well.