In December, used car prices fell slowly following months of ups and downs. As we enter the new year, used car prices are slowly falling. In January 2025, the average used car listing price sits at $25,571. New car incentives are pulling buyers away from the used car market as phenomenal year-end sales wrap up. With the continuing volatility of used car prices, it’s never been more important to track the value of your car.

👉 We also track new car prices. See the latest monthly update here.

Used Car Prices – January 2025 Update

According to the latest used car market data from Black Book, the used car prices are steadily falling at wholesale markets. These are the markets that most car dealerships buy and sell preowned inventory from. When will retail used car prices drop further? We’ll get into that below. First, let’s take a closer look at wholesale prices last week.

Is the car bubble bursting? Let’s look at the data.

This week, wholesale used car prices fell slightly. In fact, recent used car price trends mirror pre-pandemic seasonal norms. That’s a great sign, despite price remaining well above 2019’s averages. This week, used car prices fell -0.63%, following a similar decline last week. The good news is that recent price movement has been similar to pre-pandemic seasonal trends.

Which used car prices are falling most? Let’s take a look at the latest data from Black Book.

Used car prices (wholesale sedans)

The overall car segment saw prices drop (-0.66%) this week, following a decrease of -0.44% last week. This week’s price drops are broad, ranging from full-size cars to compact cars.

Used Truck Prices (Wholesale)

Used truck prices are falling again in January 2025. Used truck and SUV prices were down last week, dropping by -0.57% in one week. Almost every SUV and truck segment had used prices falling over the past seven days. Only compact vans remained steady. Interestingly, minivan prices saw the largest drop. Full-size truck prices are also falling.

Since the onset of the pandemic, full-size vans have appreciated more than 60%, before falling off a cliff in 2023 and 2024. Truck prices are finally falling, however great new truck deals are keeping more buyers on new car lots.

Retail used car prices are still falling

As the data above shows, retail car prices are slowly dropping. In fact, used car prices are behaving like they historically did in the pre-pandemic era. The busiest time of the year for new car sales is approaching quickly. As a result, more car shoppers are considering new car incentives (like the abundance of zero percent financing), which is weakening demand for used cars.

Used Car Inventory – Retail Markets

According to Black Book, the estimated Used Retail Days-to-Turn is now at 51 days. In other words, it take 51 days to sell a used car on average. Cars in higher demand will sell quicker, and those with less demand can take considerably longer.

In fact, as you can see below, used car inventory is normalizing for the first time since the pandemic. This is a notable trend, and can be used as negotiating leverage.

New Car Price Trends (Monthly Updates)

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Older used cars have appreciated most

A new phenomenon we have begun tracking is that older used cars are appreciating more rapidly than younger used cars.

This is primarily a function of consumer demand. Retail customers that want to purchase a car at a sub $20,000 price-point are being forced to look at older used vehicles because the new ones have increased in value beyond their budget. This is scary, crazy, and a whole host of other words.

How much did used car prices increase back in 2021?

How did used car prices get so high? To find the answer, we simply need to remind ourselves of the car shortages of 2021. Depending on who you ask (Cox Automotive, Edmunds, CarGurus, or Black Book), retail used car prices increased anywhere from 32% to 36% in 2021.

Black Book shows a 35% increase in retail used car prices for 2021 (the purple line). For comparison, the orange line shows a 7% appreciation for used car prices in 2020, and the blue line shows a 3% depreciation of used car values for 2019.

Here’s a month-over-month table showing used car price trends for 2021:

This data, supplied by Cox Automotive, shows the incredible ascent used car prices took in 2021.

Wholesale used car price trends are even crazier

Every used car has two prices; the wholesale price, and the retail price. As consumers we typically concern ourselves with the retail price, and with good reason, unless you have a dealer’s license you can’t buy a car wholesale at an auction.

That being said, wholesale used car prices are the lifeblood of car dealers, and the used car price trends we saw on the wholesale side in 2021 were truly unfathomable. While retail used car prices increased ~36% in 2021, wholesale used car prices rose 52%.

There is an obvious interplay between wholesale and retail prices. As wholesale prices increase, we can expect retail to prices to do the same.

Interactive data

Thanks to our friends at foureyes, we can share with you this real-time updating data set on used and new car prices.