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Used car price trends in 2023 have been difficult to keep track of. One week prices are going up, the next week prices are falling down.
Don’t worry, CarEdge has got your back.
Whether you are in the market to buy a used car, or are thinking about selling a car you already own, we’ve crunched the numbers so that you can clearly understand what trends are happening in the used car market right now.
Buckle up, let’s explore these essential insights together.
Used Car Prices Are Falling (Slowly)
A new analysis from Cox Automotive shows that used car sales are slowing, and at the same time available used vehicle inventory is diminishing.
The multi-year chip shortage that reduced global production of new vehicles in 2021 and 2022 means there are fewer 1 and 2 year old used cars in the market today. This lack of supply is keeping used car prices elevated even as the average interest rate on a used car reaches 13.5%.
Nationwide, used car supply stands at approximately 2.2 million units, a decrease of 256,000 compared to June of the prior year. Quality used cars are still fetching a premium at dealer auctions, however they are fewer and further between.
What CarEdge’s Ray Shefska Thinks
What goes up, must come down. But when it comes to the used car market of the past 24 months that hasn’t been the case. Where do things stand in mid-2023? “I think the used car market is in flux,” notes Ray, “we are seeing a steady decline in wholesale values at the auctions that is barely reflected on the retail side.” He further explains that quality late-model used cars remain in short supply and still command high prices, stating that “those retail prices won’t be dropping much, if at all, in the near term.”
Cheaper used cars are dropping in price most
Used car price trends in 2023 look very different across the various segments of vehicles that are sold in the United States. Over the past 24 months we saw major increases in price for “cheaper” used vehicles ($10,000 or less), as consumers looked for any car that could reliably get them from point a to point b without breaking their bank.
Interestingly today, the largest dips in wholesale used car prices are being seen in lower-quality cars and “cheaper” vehicles. This could signal some relief for consumers who are looking for something reasonably priced. “The lower quality cars at the auctions are what are seeing the real declines in values, so whatever retail future price drops that there are will probably be reflected mostly in this group of vehicles,” Ray explained.
This trend coincides with auto repos increasing significantly. During the pandemic very few vehicles were repossessed. Now, as auto loan delinquency rates increase, we are seeing the number of repo vehicles showing up at dealer auctions increase as well. Typically repossessed vehicles have been treated a bit more “roughly” than other sources of used vehicle inventory (lease returns for example).
Higher Used Car Interest Rates
Financial institutions are tightening their lending guidelines in response to higher loan delinquency rates. This shift will significantly influence overall sales as it will be more difficult for consumers to find deals within their monthly budget or get approved for financing.However, those with the capacity to purchase the more expensive, higher-quality used cars are likely to continue doing so due to their financial capability to weather these lending challenges. “Those who can and do buy the overpriced newer used cars can and will continue to do so because A) they can put more money down to qualify for a loan and B) they have the ability to be able to afford the higher payment.”
On the flip side, those aspiring to purchase older, cheaper cars may encounter obstacles in qualifying for loans under these stringent guidelines, potentially precipitating a steeper price decline in this vehicle category. Looking forward, high retail prices for low-mileage vehicles a few years old are expected to persist due to ongoing customer demand and limited availability. “I believe that high retail prices will continue well into the future for the 1,2 and 3-year-old lower mileage vehicles because of continued high customer demand and limited availability. I believe that we will still be complaining about high retail prices for quite some time.”
Prices: High But Dipping
Although the average listing price for used cars in America has dipped 3% since this time last year, they are still near all-time highs. To give some perspective, the average used car price is 39% higher than in 2019 and into pre-pandemic 2020. This dip may represent a relative ‘cooling off,’ but used car prices remain far from pre-pandemic norms.
While retail prices for used cars have dipped slightly since the beginning of 2023, wholesale prices have stabilized, returning to where the year began. This shift might hint towards an equilibrium in the market after a period of intense fluctuations.
Used Inventory Averages Higher Mileage
An interesting trend is the rising mileage of used car inventory. This change signifies that more drivers are holding onto their cars for longer, a response to continually increasing new car prices that outpace overall inflation. As the cost of buying new becomes less attainable, owners are maximizing the value of their existing vehicles.
New vs. Used Electric Vehicles
In the world of EVs, things are always changing. Over the past year, the gap between new and used EV prices has narrowed significantly. The rise in new EV inventory, up by a staggering 342% year-over-year, coupled with multiple price adjustments from Tesla, has led to a major correction in the used EV market.
In Q2 of 2023, the average price of a used EV stands at $41,630, quite a bit lower than the $50,000 average a year ago. However, considering the unavailability of federal incentives for used EVs over $25,000 and the abundance of local, state and federal incentives for new EVs, many buyers may still find buying a new EV to be their best bet. For a complete list of eligible cars, check out fueleconomy.gov.
The Market in Perspective
Even though used car prices are experiencing a slight drop, it’s not enough to counteract the significant increases we’ve seen over the last few years. However, with new car inventory increasing rapidly, we’re witnessing the return of buyer incentives, leading to potentially better deals. Moreover, buying new often comes with the added benefit of a full manufacturer warranty.
Stay tuned to CarEdge for the latest insights on car buying trends as we continue to monitor these evolving market conditions. Whether you’re considering a used or new vehicle, we’re here to help you make the most informed decision. Looking for behind-the-scenes market data for new and used vehicles? CarEdge Data is the perfect plan. Ready to dig deep with your top picks? Run a CarEdge Report for the most insights you’ll find anywhere.
Our Coaches are always ready to guide you through your deal with our CarEdge Coach plan.
Florida Governor Ron DeSantis has approved a bill partially banning direct-to-consumer car sales in the state, a move set to make the most pro-dealer state even more of a car dealer’s paradise. The legislation, heavily influenced by the Florida Automobile Dealers Association (FADA), also imposes restrictions on automakers, limiting their ability to penalize dealers who choose to mark up car prices. The new Florida law is being lauded by car dealer associations. Make no mistake: House Bill 637 is bad news for consumers, no matter how you look at it.
Florida Bans Legacy Automakers From Selling Direct-to-Consumer
The Florida dealer lobby played an instrumental role in drafting and pushing through the bill (HB 637). For dealers, their efforts have paid off. The legislation mandates that traditional automakers must sell their vehicles through approved dealers, reinforcing the conventional car sales model and curbing the growing trend of direct-to-consumer sales.
However, the law includes a specific exception for electric vehicle giant Tesla. Tesla was the first to find success with its direct-to-consumer model. By including an exception for automakers who have never sold via a dealership model, Florida is steering clear of a clash with the #1 EV seller. This exception could potentially pave the way for other electric vehicle brands like Lucid and Rivian to continue their direct-to-consumer sales in the Sunshine State.
FADA President, Ted Smith, addressed this carve-out. “We made a clear delineation between a manufacturer that has never had dealers and maybe never will, and those who have been heavily dependent upon their dealerships to be their marketing and sales presence in Florida.”
Protecting the Right to Markup New Cars
Another part of the bill allows dealers to set their own prices without adhering to the manufacturer’s suggested retail price (MSRP). The new law prohibits automakers from penalizing dealers for markups. The bill also explicitly restricts automakers from limiting allocation to dealers who impose markups. Equally, automakers are prevented from rewarding dealers who choose to sell at or below MSRP.
But wait, there’s more. The bill states that manufacturers must pay dealers eight percent of the revenue from any post-purchase electronic vehicle upgrades or activations sold within the first two years of purchase. This includes both one-time and subscription-based upgrades, potentially pushing prices higher for these additional services. Evidently, car buyers will have even more reasons to reconsider subscriptions for heated seats or over-the-air updates for acceleration boosts.
The Dealership Lobby Has a National Presence
These changes highlight the huge influence of dealer lobbies in the United States. In the most recent election cycle, 85.5% of U.S. Representatives and 57 Senators received campaign contributions from auto dealers. This influence is so great that even the Consumer Financial Protection Bureau (CFPB), established in 2011 to protect consumer interests, has a provision prohibiting the agency from directly monitoring dealerships.
Ultimately, the landscape of car buying continues to evolve, with power plays between manufacturers, dealers, and legislators. At CarEdge, we’re committed to helping you navigate car buying to find the best deals.
Browse cars with behind-the-scenes market data with CarEdge Car Search. Ready to unlock the full suite of data for a car you’re serious about? CarEdge Report is your one-stop shop for deal analysis. Get 1:1 expert guidance as you learn how to negotiate the BEST deal with CarEdge Coach.
Stay tuned as we continue to monitor the impact of this new Florida Law on car buyers in Florida and potentially beyond.
The current landscape of the car market is an intricate maze of fluctuating inventory levels and shifting price tags. Your guiding light through this labyrinth? Knowledge, of course. The knowledge that shines the brightest is the understanding of Market Day Supply (MDS). This illuminates the number of days it would take to sell all the inventory of a particular model, assuming no new cars enter the market and the current sales rate holds steady. A high MDS suggests a surplus that may give you, the buyer, some bargaining leverage. In contrast, a low MDS may indicate the sellers have the upper hand.
By exploring CarEdge Data, we’ve highlighted which new cars in 2023 have the best and worst reliability ratings, and what the inventory data tells us about them. We think you’ll agree that these insights are rather fascinating, and provide you with the knowledge to navigate the market like a pro.
The Most Reliable New Cars Today: Inventory and Negotiability in 2023
Using CarEdge Data, we analyzed nationwide supply and sales data for the ten most reliable cars in America, according to Consumer Reports. Here’s the data, and what it means for buyers.
CR Reliability Ranking
Make
Model
Starting Price
Market Day Supply
Total For Sale
Total Sold (45 Days)
1
Toyota
Corolla Hybrid*
$24,145
24
11887
22588
2
Lexus
GX
$59,775
56
3358
2679
3
MINI
Hardtop 2 Door and 4 Door
$26,795
95
2809
1329
4
Toyota
Prius
$28,445
23
1314
2574
5
Mazda
MX-5 Miata
$29,215
85
1184
631
6
Lincoln
Corsair
$40,085
96
3315
1550
7
Toyota
Corolla*
$22,795
24
11887
22588
8
Subaru
Crosstrek
$26,290
18
238
598
9
BMW
3 Series
$44,795
67
2642
1778
10
Toyota
Prius Prime
$33,345
43
630
664
Firstly, the reliability leaderboard has a strong Toyota presence. Models like the Toyota Corolla Hybrid, Toyota Prius, and Toyota Corolla claim high reliability ratings from Consumer Reports. These models fly off the dealer lots relatively quickly with a Market Day Supply of just 23-24 days, showing the high demand for reliable Toyota cars. Data was unavailable for the Corolla Hybrid, so we have included the latest numbers for the overall Corolla model. These popular, reliable cars will be less negotiable due to higher demand and quicker sell times.
CarEdge’s Ray Shefska made it clear that despite great reliability and high demand, the days of being forced into paying a dealer markup are long gone. “No matter what the dealer tells you, never pay a markup or so-called ‘market adjustment’ for a new Toyota. The car market is very different in 2023 compared to the madness we saw during the chip shortage.”
Next, the MINI Hardtop (2 Door and 4 Door) and Lincoln Corsair, despite their high reliability, have a much longer MDS (95 and 96, respectively), suggesting these reliable models may not be as in-demand. You’ll have more leverage negotiating these prices, especially with industry knowledge and familiarity with how to work a deal.
The Subaru Crosstrek, another model with a high reliability rating, stands out with the lowest MDS among the top 10 reliable cars, indicating the supply can barely keep up with demand. CarEdge Car Coach Justise says that Subaru has been the low-inventory king for many years, and that’s not changing any time soon.
Looking at the price tags, the most reliable vehicles come with a broad range of starting prices, from $22,795 (Toyota Corolla) to $59,775 (Lexus GX). This proves that reliability isn’t necessarily associated with a steep price.
Less Reliable, Less Demand?
Car buyers aren’t racing to dealer lots for the models known for poor reliability. Unfortunately, American brands dominate the bottom ten.
Make
Model
Starting Price
Market Day Supply
Total For Sale
Total Sold (45 Days)
Jeep
Wrangler
$36,990
98
26726
12330
Mercedez-Benz
GLE
$58,850
69
5700
3733
Jeep
Gladiator
$40,785
289
20945
3260
Chevrolet
Silverado 1500
$36,300
93
68320
33219
GMC
Sierra 1500
$37,100
121
30856
11477
Chevrolet
Bolt
$27,495
35
3026
3908
Ford
Explorer
$38,355
93
28323
13688
Nissan
Sentra
$21,145
60
13381
10048
Lincoln
Aviator
$54,735
178
4360
1103
Hyundai
Kona Electric
$34,885
n/a
n/a
n/a
The Chevrolet Silverado 1500, despite its less than stellar reliability, has a significant volume on sale but a relatively high MDS. The takeaway? It’s plentiful but not necessarily popular.
Two other models, the Jeep Gladiator and Lincoln Aviator, despite their lower reliability, have very high MDS (289 and 178, respectively). It appears these models may be the wallflowers of the dealership lots.
Meanwhile, the Nissan Sentra holds its own despite lower reliability, with a fairly low MDS (60). Its budget-friendly starting price may be a contributing factor.
Interestingly, the Hyundai Kona Electric does not have available market or sales data, shedding little light on its demand or supply status.
As we can see, both highly reliable and less reliable cars come with a wide range of starting prices. This indicates that the cost is not necessarily a reliable indicator of its reliability.
Conquer Car Buying with New Knowledge
Now, armed with these insights, you can navigate the market better. Whether you’re looking for a reliable titan like the Toyota Corolla, or even considering a less reliable model like the Chevrolet Silverado 1500, understanding the role of market days’ supply can give you the edge in your car-buying journey. Where there’s more inventory, greater negotiability is sure to follow.
Don’t forget to check out CarEdge Car Search, where auto industry insiders see behind-the-scenes data with every new and used car listing!
But we won’t leave you just yet. We want to arm you with more resources to make your journey smoother. One such tool is our free Car Buying Cheat Sheet. This popular resource can enhance your understanding of the market and help you zero in on the perfect car at the perfect price.
For a more detailed understanding, download your first CarEdge Report today. This report offers a comprehensive breakdown of key numbers in a simple and digestible format, setting you up for success at the negotiation table.
And if you’re looking for a personalized touch, CarEdge Coach is your ticket to savings. Our expert car buyers can offer personalized advice and help you negotiate thousands off your next car.
Don’t navigate the car market alone; let CarEdge steer you in the right direction. You’ll be thankful you did.
Navigating the current car market can be a daunting task, with its varying inventory levels and volatile prices. In this context, knowledge truly is power. A critical piece of this knowledge is understanding the Market Day Supply (MDS).
MDS is a measure of the number of days it would take to sell all of a particular model of car, based on the current sales rate, assuming no additional inventory is added. A high MDS suggests an oversupply, potentially giving buyers leverage for negotiation, while a low MDS might indicate a seller’s market, where negotiating could prove tougher.
Using CarEdge Insights, we identified which new cars have the most and least inventory available in May 2025.
Why does inventory matter to car buyers?
Inventory influences negotiability. When there’s a glut of cars, dealers will be more inclined to negotiate with you. Slim pickings? Not so much. This valuable insight can give you an edge in your car buying journey, helping you save money and avoid the hassle.
Here are the fastest and slowest-selling cars and trucks in America right now.
The Top 10 in May 2025: New Cars With the Highest Inventory
This month, a wide range of makes and models are represented in the top 10. For the first time in a year, Stellantis has no models in the top 10. This is great news for them, and bad news for their competitors. The Jaguar F-PACE luxury SUV remains in the top spot as high interest rates hamper luxury sales. With high depreciation, high fuel costs, and questionable reliability, the F-PACE has a D- CarEdge Value Rating.
A few electric crossovers join the top 10 in May: the Volkswagen ID.4 and the Ford Mustang Mach-E. Sales for these two models have steadily declined as more competition enters the segment. For example, sales of EVs from Chevrolet and Hyundai are rising right now.
The average selling price for the 10 slowest-selling cars is $73,638 in May 2025, a large spike due to the presence of the Porsche Taycan on the list.
Here are the 10 slowest-selling new cars, in other words, the models with the most inventory today.
There’s BIG potential for deals on any of these cars, but only withnegotiation know-how.
The Bottom 10 in May 2025: New Cars With the Lowest Inventory
On the other side of the coin, these are the fastest-selling cars today. This month, we’re seeing the usual suspects on the list, plus a flood of luxury models. Once again, Toyota Motors dominates with the Lexus RX Hybrid as the fastest-selling car in America. Seven of the ten fastest-selling new cars are Toyota or Lexus models. Yet, Toyota remains a brand known for relatively fair and transparent pricing.
With multiple Lexus models, an Audi, and a BMW on the list, some mainstream luxury vehicles are doing quite well right now. Although this is great news for automakers who are thrilled to sell high-margin models, it’s bad news for buyers looking to negotiate.
If you’re shopping for any of these new cars in 2025, you’ll be up against stiff competition. The average selling price for the 10 fastest-selling cars is $57,919.
In May, this is the largest price gap between the fastest and slowest selling cars that we’ve ever seen. Even without the Taycan on the slowest-selling rankings, there would still be a $8,000 difference between the fastest and slowest selling cars.
Ready to outsmart the dealerships? Download your 100% freecar buying cheat sheets today. From negotiating a deal to leasing a car the smart way, it’s all available for instant download.
Here’s a powerful and sobering statistic: In 2023, 30% of used cars have a price tag of under $20,000. Five years ago, 60% of used cars were below that price point. Where have all of the affordable used cars gone, and will they ever return to the market? We’ll take a look at the latest analysis from Edmunds, as well as the latest used car market data from CarEdge. Used car deals can still be had, if you know where to look, and how to negotiate.
Unprecedented Trends in the Used Car Market
The impact of the infamous chip shortage of 2021 and 2022 continues to be felt in the used car market. An astonishing 18 million new cars were never produced during this period, essentially erased from production schedules and not replaced. This production gap has created a ripple effect that will continue to influence the used car market for years to come, and this shift is just one of the significant changes the industry is undergoing.
The latest data from Edmunds suggests that we might be facing a new normal rather than a temporary aberration. In terms of pricing, the average used car transaction price fell by 6.4% in the first quarter of 2023 compared to the same period last year. Sounds great, right? Not so fast. Used car prices are still a staggering 44% higher than the average back in 2018. To put it in perspective, the average selling price for a used car in America in Q1 2023 was $28,381, a far cry from the $19,657 average seen five years ago.
Cheap Cars Are Vanishing
Used cars with a price tag of under $20,000 are hard to come by. The Edmunds data suggests that consumers have to look towards used cars that are at least 8 years old and have over 70,000 miles on the clock before they can find sub-$20,000 prices.
If you’re hoping for a used car that costs $15,000 or less, you’ll likely be considering vehicles that are a decade old or more. On top of that, there’s a huge mismatch in demand versus supply of cheap used cars. People want affordable transportation, but the new car market simply doesn’t offer it. The result is more competition for cheap used cars.
Older vehicles are seeing a surge in popularity despite their age. The reason is simple: they’re the only affordable cars around. Nearly half of all used cars sold today are older models priced under $25,000. In the new car market, a mere 5% of cars are sold for less than that price.
It’s more important than ever for consumers to understand car market trends and adjust their expectations (and budget) when setting out to purchase a used vehicle.
New Data Shows a Tough Market For Affordable Car Buyers
Our team recently launched a new 100% free tool, CarEdge Data Explorer. For the first time ever, local market data is available for every used car model, all in one spot. Using CarEdge Data Explorer, we analyzed used car listings in the five biggest used car markets in the nation: California, Texas, Florida, New York and Pennsylvania. By comparing market days’ supply, an important car market negotiability factor, our team of Car Coaches identified a troubling trend among the most popular age class, used cars that are three years old.
Measure Market Health with Days’ Supply
Why should you care about the days’ supply of used cars? Days supply in the car market is calculated by dividing the current unsold inventory of a specific car model by its average daily sale rate, which indicates how many days it would take to sell all the existing inventory at the current sales pace. For example, if there’s a 200 day supply of the 2019 Toyota Camry, that means it would take over six months to sell the existing inventory at current buying rates.
On the other hand, if you’re looking at a car with a 10, 20 or 30 day supply, all existing inventory is likely to be sold within the month. In other words, it’s in high demand. For reference, a typical days’ supply is about 60 days.
The shortage of affordable used cars on the market is a severe issue that is negatively impacting consumers. High-demand vehicles in the lower price range have far less inventory available, making it increasingly difficult to find a reasonably priced used car, let alone negotiate for a better deal. This situation is the consequence of several economic and industry factors we’ve highlighted, with no quick fix in sight.
In contrast, the market for larger SUVs, and full-size trucks is relatively robust, but these come with a hefty price tag. Although this disparity in the market may provide a wider choice for those who can afford these more expensive models, it leaves budget-conscious consumers with limited options.
Lower Prices = Lower Inventory
A graph of data from Data Explorer of the five top-selling cars, trucks and SUVs shows that lower prices mean less inventory:
Affordable models are harder to come by today. While this reality poses a challenge for buyers, it also emphasizes the need for prospective car owners to be savvy, strategic, and armed with the best information possible to navigate this changing landscape.
We’re on a mission to bring car buyers everywhere more resources and tools to level the playing field when negotiating car deals. Do your own research using the same tools our team uses with CarEdge Data Explorer. See used car inventory in your area, average prices, average mileage and more in all 50 states. Data Explorer is your jumping off point for understanding current market trends. In the face of a challenging market, knowledge and strategy are your best allies in the hunt for an affordable used car.
Dealers Send the Cheapest Cars Overseas
You know what’s infuriating? The fact that dealers are increasingly shipping their most affordable used cars overseas. Yes, everyone should have access to transportation that’s at an attainable price point. That includes countries in Africa, Central America, and other regions where American used cars are heading. But let’s remember that supply is not meeting the demand for cheap used cars right here at home.
The global market for used light-duty vehicles grew by almost 20% between 2015 and 2019, resulting in over 4.8 million units being exported from the United States to developing countries. Following a slowdown during the pandemic, exports are skyrocketing in 2023.
Interestingly, the growing popularity of electric vehicles is contributing to an affordability crisis in the used car market. Dealers in states such as New York and Florida, where consumers are increasingly purchasing EVs, are turning to international markets to sell their older gas-powered models. Check out this intriguing piece by CNN to learn more about the lucrative international trade of used cars.
Here’s What It Will Take to Bring Back Used Car Deals
1. More Lease Returns
Firstly, a significant increase in the number of returned lease vehicles could lead to more affordable used cars. The volume of lease returns dropped from 6.2 million vehicles in 2018 to 5.5 million in 2022. Further, leasing has plummeted from 33% of the new car market in 2020 to only 17% today. This decline in leasing is starting to trickle down into the wider auto market, which affects the used car supply. For those nearing the end of their car lease, our guide spells out your options at the end of a lease.
2. More Trade-Ins
Secondly, encouraging more trade-ins could help make used cars more affordable. Drivers nowadays are holding on to their cars for longer and being more judicious when it’s time to sell, often opting to sell to private buyers instead of dealerships. Increasing the number of trade-ins could pump more used vehicles into the market, potentially helping to stabilize prices.
Always be sure to compare quotes from online car buyers here before trading in! You could get thousands more for your car.
3. Quicker Rental Fleet Turnover
Lastly, increasing turnover in rental car fleets could also contribute to a more balanced used car market. The average age of rental car fleets has risen from 1.9 years in 2019 to 3 years today. While older rental cars can provide a boost to used car inventory, exercise caution when considering these vehicles due to the potential for heavy use and lack of maintenance during their rental life. For a deeper dive into this topic, check out our guide to buying a rental vehicle.
Steering Through the Challenges, Guided by Data
In summary, the used car market is presenting unprecedented challenges for budget-minded buyers. Today’s market conditions are driven by a confluence of factors. These include a shortage of new vehicles due to a chip crisis, a decline in leased vehicles and trade-ins, and an older rental car fleet. These changes have led to a significant increase in the average price of used cars. Affordable options under $20,000 are increasingly rare and more challenging to negotiate.
Before you kick off car shopping, be sure to explore used car deals and inventory in your area with our newest free tool, CarEdge Data Explorer. We’ve also just launched our ultimate deal analysis tool, CarEdge Report, included with every Data and Coach plan. This tool equips you with comprehensive, up-to-date market insights to give you the upper hand in finding and negotiating the best deals on used cars. At CarEdge, we believe in demystifying car buying, once and for all. Knowledge is power!