Why A $30,000 Used Car Is A Better Deal Than You Think It Is
The all-time record for the average transaction price of a used car was set in the second quarter of 2022 at $31,628. Today’s used cars average very close to that amount, but are still a much better deal.
Here’s why.
The average used car transaction price in the second quarter of 2025—that’s the most recent period with data— stood at $31,216. That’s just a few hundred dollars from the all-time high set in 2022, but that’s not the whole story. The average transaction price of that car when it was sold as a new vehicle also needs to be factored in, and the difference between 2022 and today is nearly $5,000.
Put simply, even though used cars are close to their peak average transaction price, they are still much better deals than they were as the world exited the worst of the COVID-19 pandemic, once you factor in their original selling prices. In fact, says Edmunds, the price gap between new and used cars is the highest it’s been since the second quarter of 2020.
A closer look at the residual values of used cars on the market today offers a few more interesting insights. Luxury cars tend to lose value more quickly than less expensive mainstream cars, and that remains true today. But even more so than typical. Three years ago, $100,000 cars, on average, held on to 68% of their value after three years of ownership. Today, that figure stands at 57%.
Become an AutoGuide insider. Get the latest from the automotive world first by subscribing to our newsletter here.
Growing up in a family obsessed with performance and as the son of an automotive engineer, Jeremy Korzeniewski has spent his entire life as a car enthusiast. Also an avid motorcyclist, Jeremy has spent the last two decades writing about the transportation industry and providing insights to many of the largest automotive publications in the world.
More by Jeremy Korzeniewski
Comments
Join the conversation