Spring is just around the corner, and if you’re in the market for a used car, you might want to think strategically about when to buy. The worst time to purchase a used car is fast approaching, as prices historically rise in late March, April, and early May when demand surges. On the flip side, if you’re thinking about selling, spring is the perfect time to get the most for your car.

Here’s everything you need to know about where the used car market stands heading into spring 2025.

Used Car Prices Will Rise Soon – Here’s Why

While used car prices have come down from their record highs in 2022, they’re still well above historical norms. As of February 2025, the average used car selling price is $25,128. That’s $5,000 higher than just five years ago. However, our weekly used car price updates show that selling prices have been slowly falling in early 2025. As we head into spring, seasonal trends are on track to send prices the other direction. With spring car-buying season ahead, prices are about to climb higher,

Several factors are expected to drive used car prices higher for spring 2025:

Tax Refund Season Fuels Demand – Many buyers use tax refunds for down payments, creating a rush of demand in March, April, and May.

Lower Inventory at Affordable Price Points – Used cars under $15,000 are in short supply, with only a 35-day supply on the market. That’s nine days lower than last year, according to Cox Automotive.

New Car Prices Keep Climbing – As automakers continue to push new car prices higher, more drivers are shopping used car lots in search of affordability. As preowned lots get crowded with shoppers, negotiations become more challenging.

Top Brands Are the Most Competitive – Used Ford, Chevrolet, Toyota, Honda, and Nissan models made up 51% of all used cars sold last month. Because these brands are in high demand, prices are expected to rise the most in the spring.

A look at the best-selling used cars

Here’s a look at the average selling prices of the top 10 used cars in America in 2025, courtesy of CarEdge Insights:

Although used car and truck prices have fallen from recent highs, they still remain far above historical norms. Car prices have exceeded the rate of inflation over the past 5 years, adding insult to injury for household finances.

Today’s used car buyers are unsurprisingly finding the best deals on higher mileage vehicles. As drivers hold on to vehicles longer, the odometer readings continue to creep higher. The average used car on sale in the U.S. has 70,000 miles on the odometer, a new all-time high. It’s more important than ever to get an independent Pre-Purchase Inspection on ANY used car before buying.

👉 Get Your FREE Used Car Buying Toolkit – Window Sticker and All!

Used Car Inventory Is Tight – And It’s Getting Tighter

Another reason prices will keep rising? There simply aren’t enough used cars on the market.

Total used car inventory is down 3% year-over-year. There are currently 2.23 million used cars for sale in the U.S., compared to 2.5 million three years ago. The lingering effects of pandemic-era production shutdowns continue to impact supply, with fewer used cars available today.

Days of supply shows a tightening market. Right now, the market has a 48-day supply of used cars, down from 56 days at this time last year. With demand about to spike, this will shrink further, making it harder to find the right car at a great price.

If you’re shopping for a used car, expect inventory to tighten and prices to rise as we enter spring. Basic supply and demand principles lend themselves to higher used car prices in late March through early May. 

Used Car Loan Rates Remain High 

Financing a used car in 2025 comes with a major challenge: high interest rates. The average used car loan rate is still hovering around 14% APR, making it tougher for buyers to afford monthly payments. Even those with excellent credit are struggling to find rates below 7% APR, even when financing through credit unions and local banks.

Unfortunately, relief isn’t on the horizon. The Federal Reserve has signaled that future interest rate cuts are on hold due to persistent inflation. That means used car loan rates are likely to remain elevated for the next several months.

💡 CarEdge Tip: If you need to finance a used car, shop around for the best rates before stepping foot in a dealership. Comparing offers from multiple lenders—especially local credit unions—can help you secure the lowest possible rate.

Spring Is the Best Time to Sell a Car

While buyers face a more competitive market, spring 2025 is an excellent time to sell a used car or trade one in.

More buyers = better offers – With demand increasing, used car sellers will have more negotiating power, whether selling to a private buyer or trading in at a dealership. Sellers who are familiar with seasonal trends in used car prices are more likely to get a fair offer. 

Higher trade-in values – As dealers have a harder time sourcing inventory, trade-in offers will be more competitive, especially for popular brands like Toyota, Honda, Subaru, and Ford. 

Bottom Line: Should You Buy a Used Car in March 2025?

✅ If you need a car soon – Act fast before prices climb higher. If you’re set on buying this spring, compare listings now and lock in a deal before demand spikes.

⏳ If you can wait 90 days – Consider holding off until late May or early summer, when the spring surge settles and inventory stabilizes.

🚗 If you’re selling – Spring is the time! Take advantage of high demand and strong trade-in values before the market shifts come summer.

👉 Get Your FREE Used Car Buying Toolkit – Featuring Target Price, Window Sticker and More!