By Steven Symes 
Consumers keep getting squeezed everywhere they turn, including with used car prices reportedly hitting record highs. When you combine that with insane new vehicle prices, sky high insurance premiums, groceries, utilities, housing, and everything else that’s inflated in price drastically lately, it’s overwhelming.
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This is the reality we’re all facing at this point. Edmunds recently revealed that it found by combing through used car listings that three-year-old models on average surpassed $30,000 during the first quarter of 2025 at an average $30,522.
A year ago, that figure was $29,844. While you might think that’s a small difference, keep in mind this is the average. In other words, with certain brands and models, the upswing in prices is far worse.
Granted, this isn’t focusing on older used cars but instead those that are often lease trade-ins. Not shockingly, Edmunds concludes what’s fueling this problem is the fact three years ago there was a supply constraint for chips and other materials, leading to fewer vehicles made.
On top of that, people gravitated away from leases, driven by shortages. They didn’t want to be caught at the end of the lease without a viable form of transportation. That has meant fewer used cars that are 3 years old or newer, putting a pinch on anyone wanting to buy in that sweet spot zone.
As a result, people are saving less by buying near-new rides versus new ones off a dealer’s lot. Edmunds found in its data that the gap between the two was about $17,000 a year ago but has shrunk to $16,970.
While it still might be a wise financial move to get that lightly used two-year-old car versus a brand new one, your savings might be diminished. We do know some models where getting one that’s near-new financially doesn’t make as much sense as buying a brand new one.
Everyone’s on edge about how tariffs might affect these numbers and the car market in general. We don’t have answers on that, but we’ll definitely be keeping an eye on everything.
What a crazy time to be alive.
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