Used car prices reach record highs as inventory remains tight for budget-conscious shoppers
Used car prices reached a record high for the second quarter of 2026, with the average list price of a three-year-old vehicle topping $32,000. Data from Edmunds indicates that while new vehicle and gas prices remain high, consumers are increasingly turning to the used market to find value. However, Cox Automotive reports that inventory remains below 2023 and 2024 levels, creating significant challenges for shoppers seeking affordable options. Specifically, vehicles priced under $15,000 now represent only 16.4% of total used inventory, down from 20.6% a year earlier. This scarcity of lower-priced units has forced many consumers to settle for older models to stay within a budget. For example, iSeeCars.com analysts noted that while 4-year-old cars were typically priced under $20,000 before 2020, consumers must now often search for 7-year-old units to find that same price point. Despite these challenges, retail used-vehicle sales rose in July, supported by the highest level of credit availability since November 2015.