Asger Risom
After a brief drop in 2024, used car prices in the UK and US are climbing once again. Buyers who waited for a bigger dip may have missed their chance, as average prices have risen for five consecutive months.
After a brief drop in 2024, used car prices in the UK and US are climbing once again. Buyers who waited for a bigger dip may have missed their chance, as average prices have risen for five consecutive months.
Prices Climb for Fifth Month in a Row
Customers paid an average of $31,770 for a one- to five-year-old used car in July 2025, up 3.7% compared to July 2024. This marks the fifth consecutive month of price increases after more than two years of steady declines.
Gains Follow Earlier Declines
Just a year ago, used car prices were falling, dropping 4.8% in August 2024 compared to the previous year. At that time, the average used car cost $30,228, giving buyers hope that more affordable deals were on the horizon.
March Marked a Turning Point
Prices began to reverse in March 2025 with a 1.0% year-over-year increase, climbing again in April (1.8%), May (2.0%), June (4.8%), and July (3.7%). Analysts say the shift reflects renewed demand in a tight market.
BMW 4 Series Leads the Price Surge
The BMW 4 Series saw the biggest year-over-year jump, with average prices rising by 30% – an increase of $9,370. Analysts attribute the surge to strong demand for luxury coupes and convertibles amid limited supply.
Porsche Cayenne and Land Rover Discovery Follow
Porsche’s Cayenne SUV posted a 22.3% increase in average used prices, while the Land Rover Discovery climbed 20.4%. Both models benefit from strong brand appeal and higher costs for comparable new vehicles.
High New Car Prices Drive Demand
Analysts note that record-high new car prices are pushing buyers into the used market. Tariff uncertainty and reduced supply of affordable vehicles have further boosted competition for second-hand models.
EVs Remain a Rare Bargain
While petrol and diesel vehicles are climbing in price, used EVs are bucking the trend. Prices for used electric cars fell 1.3% in July, continuing a slowdown from steeper drops earlier in the year.
Tesla Models See the Sharpest Declines
The Tesla Model S, Model X, and Model Y top the list for the biggest used EV price drops, each falling more than 12% in July. This follows months of declines as EV supply outpaces demand in some markets.
Experts Warn the Window May Have Closed
According to iSeeCars Executive Analyst Karl Brauer, those hoping to secure a bargain on a used petrol or diesel model may have waited too long.
