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New data from CARFAX shows that average Used Car Prices have climbed to their highest point in 18 months to just under $25,000. That means car shoppers around this time are paying around $1,300 more for the average used vehicle than they would have just a year and a half ago.
Notably, the price gap between new and used cars is unusually narrow for some models.
Typically, a three-year-old car would have lost about 40% of its value. But CARFAX data shows that some popular vehicles like the Honda Civic sedan and Ford Bronco, Kia Seltos, and Toyota Corolla Cross SUVs now have 2023 models priced within roughly 10% of their new 2025 counterparts.
"It's rare for used and new car values to be this close," said Patrick Olsen, Editor-In-Chief at CARFAX. "Potential buyers should do their research and act quickly if they're considering getting a new car; these price gaps won't last forever."
What's driving the tight market? Limited used car inventory, which remains below pre-pandemic levels. The ripple effects of reduced new-car sales during the pandemic mean there are fewer used cars available today. Adding to the atypical market conditions is a dip in consumer confidence, now at its lowest point since April. In response, dealers and automakers are offering new financing deals to encourage buyers to consider new vehicles.
Shopping for a Car? Here Are 3 Top Tips To Consider:
- Search: Check CARFAX Car Listings for thousands of new and used cars in your area — every used car comes with a free CARFAX Report.
- Compare: Don't assume "used" is cheaper right now. If a new car's price is close to the older model, consider the value of fewer miles, newer features, full factory warranties, interest rates, and lower maintenance costs.
- Finance: Explore different makes and models that fit your budget, and ask the dealer about financing, warranty coverage, and interest rate options.
To put these numbers into perspective, let's take another look at a Honda Civic. The average price of a 2023 Civic on Carfax Car Listings right now is $24,300, while the average price of a new 2025 Civic is $27,400. If buyers are putting 10% down on their purchase and choosing to pay over 72 months, the monthly payments are incredibly close:
- A shopper with great credit would pay about $372 a month for the used 2023 Civic, paying the average 7% interest.
- A shopper with great credit would pay about $397 for a new 2025 Civic, paying 4.99% interest (according to Honda Financial Services for a new Honda).
That's only a $25-a-month difference in payments, but the new buyer has a car that's 3 years newer, has more features, has nearly zero miles on it, and has a full factory warranty.
Editor's note: These numbers are based on CARFAX Car Listings data from September and October 2025. Interviews with a Carfax expert are available anytime. Please contact Em Nguyen at emnguyen@carfax.com.
About CARFAX
CARFAX, part of S&P Global Mobility, helps millions of people every day confidently shop, buy, service and sell used cars with innovative solutions powered by CARFAX® vehicle history information. The expert in vehicle history since 1984, CARFAX provides CARFAX Car Listings, CARFAX Car Care, CARFAX History-Based Value and the flagship CARFAX Vehicle History Report to consumers and the automotive industry. CARFAX owns the world's largest vehicle history database and is nationally recognized as a top workplace by The Washington Post. Shop, Buy, Service, Sell – Show me the CARFAX®.
S&P Global Mobility is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets.
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SOURCE CARFAX
