Used Car Price Trends for 2025: What Buyers & Sellers Need To Know

Thinking about buying a used car this year? The market for pre-owned vehicles has changed over the past few years, leading many to wonder what to expect from used car price trends in 2025. Read on to learn about the key factors impacting vehicle costs this year — both in our service area of Lynwood, CA and beyond — and how buyers and sellers can navigate the market more effectively.

Will Used Car Prices Go Up or Down in 2025?

Used car prices are currently a little lower than normal, indicating better prices for shoppers as we head into spring. In fact, current market conditions are mirroring pre-pandemic seasonal trends, which is a welcome break from the incredibly volatile of 2020 and 2021. So far, retail listing prices are in line with those from the past two years, but we might see slightly lower costs throughout 2025.

Prices for all vehicle categories went down from December to January, and many experts are predicting lower interest rates for 2025. However, the used car supply remains sparse. Manufacturing disruptions during the pandemic caused automakers to build about eight million fewer cars than normal in 2020 and 2021, and we’re still feeling the impacts on the market.

Key factors influencing used car prices in 2025

A few major factors potentially influenced the costs of used cars this year. These include:

Economic conditions: Inflation and the possibility of American tariffs on Canada and Mexico risk putting economic strain on consumers, making them less likely to buy. While inflation and tariffs can raise prices, they also reduce demand and consumer confidence, meaning prices could remain favorable for those in a position to buy.
New car market availability: New vehicle production and inventory are set to fall by 2.4% in 2025. This, combined with potential universal tariffs, may increase new vehicle prices, possibly creating more demand for used cars.
Supply chain and manufacturing: Ongoing labor shortages and material availability issues could continue to impact used car prices by affecting the availability of new vehicles.
Interest rates and auto loans: With interest rates expected to fall slightly, we’re predicting an uptick in affordable loans for used vehicles and an increase in vehicle demand.
Electric vehicle (EV) growth: The momentum of EV adoption is continuing, but there’s still a mismatch of supply and demand. EV prices have dropped further than most other vehicle types, but the possibility of reduced government incentives will test the organic demand for electric vehicles.

Is 2025 a Good Year to Buy a Used Car?

Are used car prices dropping in 2025? Here are our future used car market predictions for this year.

When will prices be lowest?

So far, 2025 used car prices are more-or-less following trends of the last two years. If this pattern continues, we’ll expect to see the lowest prices on used vehicles during the winter months, when fewer people are shopping for cars and used car deals are easier to find. Prices may stay on the lower side until April, making the next couple of months the best time to buy a used car in 2025.

With that said, this is an unpredictable time for the economy as the government considers universal tariffs, meaning prices could jump up earlier than in previous years and remain there throughout the year.

Best used car models to buy in 2025 for value and resale

Our team of experts has identified vehicles that will likely hold their value more than most over the coming year, making them better buys for used car shoppers. These include:

Toyota Camry
Honda CR-V
Ford F-150
Nissan Altima
Jeep Grand Cherokee

These vehicles are known for reliability, affordability, and for holding their value, making them great choices for used cars in 2025. Take a look at our latest used vehicle listings for these models and many more.

Should You Sell Your Used Car in 2025?

Is this year a good time to sell a car? Overall, demand is expected to stay high throughout the year despite the economic issues facing many Americans. Our used car value forecast for 2025 tells us that the summer months are a good time to sell. More people are in the market from May to September, which helps you get the best possible resale value.

To maximize your car’s value, make repairs as needed and have it detailed. Look into selling options, including private sales or trading in with a trusted auto dealer like Hawthorne Auto Square.

How To Get the Best Deal on a Used Car in 2025

How do you get a good price on a used car this year? Here are some buyer’s tips to keep in mind.

Financing and interest rate considerations

The interest rate is predicted to fall this year, making financing a good option for those who can’t pay in cash. There are many options out there for pre-approval, as well as financing for low-credit buyers. While you’ll always save more by paying for a car in cash, 2025 looks to be a good year for financing, too.

Certified pre-owned vs. regular used cars

A certified pre-owned (CPO) car must pass a strict inspection before being available for purchase. This offers protection and peace of mind because the cars are repaired, certified, and guaranteed under a warranty, but it usually comes with a higher price than a non-certified vehicle. In the long term, a CPO car usually offers better value and reliability.

Where to find the best used car deals

Finding the best deals on used cars can take time and patience. Speak to a trusted used car dealership to help you get financing and choose a low-mileage, well-maintained used car. Alternatively, you can buy a car in a private sale, but you won’t get the same assurances that a dealership can provide.

Final Thoughts – What To Expect in the 2025 Used Car Market

It’s best to expect the unexpected when it comes to the used car market in 2025. While falling interest rates and increased supply help to reduce the cost of buying a used car, there’s a very real possibility of economic instability increasing prices. Fortunately, you have options, even if you’re not able to buy in the next couple of months when prices are forecasted to be lower.

Contact Hawthorne Auto Today

Hawthorne Auto Square is your go-to for used vehicles in the LA area. With an easy pre-approval process and competitive financing, we can help you find a reliable, affordable used vehicle to fit your needs in 2025. We can help you choose a car that will retain more of its value over the years, which helps protect your investment even during times of economic uncertainty.

We’re happy to discuss the future of the used vehicle market and what it might mean for buyers, and sellers. Our goal is to help you understand your options and empower you to make a decision that’s right for you. If you have questions about used car price trends for 2025, or if you’d like to browse our extensive selection of quality used vehicles, contact us today!

Sources: