Used vehicle prices are projected to stabilize in 2025 following several volatile years, according to Cox Automotive. The firm’s Manheim Used Vehicle Value Index indicates that wholesale prices will rise by approximately 1.4% by the year’s end compared to December 2024, with price fluctuations anticipated throughout the year due to seasonal factors. This increase comes after a modest 0.4% rise in 2024, building from the significant declines experienced in 2023 and 2022 of 7% and nearly 15%, respectively, which were influenced by the inflated prices during the COVID-19 pandemic.
Historical data shows used vehicle prices skyrocketed by over 46% in 2021 and 14% in 2020, largely tied to new vehicle shortages caused by supply chain disruptions. The surge in used vehicle prices contributed to overall inflation, according to the Biden administration. Although prices are stabilizing, they remain higher than pre-pandemic levels. The average used vehicle price was reported at $25,565 in December, marking a 3% decrease year-over-year. Cox Automotive predicts total used vehicle sales will increase by 1% in 2025, reaching 37.8 million, with retail sales showing a slight uptick.
