Few products obey the laws of supply and demand like new and used cars, but the used car market is currently acting like a rebellious teenager. Despite a significant drop in supply, previously owned vehicles saw only a small price hike in March of less than one percent.
The average listing price, according to Cox Automotive, for a used vehicle in March was $25,390, which was up just 0.7 percent compared to February. That said, prices in March are typically higher than in February as March is when tax refunds typically start getting spent.
However, Cox analysts noted that high prices for new vehicles continue to push buyers into the used market hoping for some relief. The result is that used car inventory is at its lowest level since 2019 and has dropped each of the last three months. There was a total of 1.95 million used cars on dealer lots last month, which was 5.9 percent less than the same period a year ago.
“The retail used-vehicle sales pace was strong in March, but lower by 2.9 percent compared to a year ago,” said Scott Vanner, manager of economic and industry insights at Cox Automotive. “Used retail sales volume in March is estimated at 1.62 million vehicles, up from the 1.37 million in February and at the highest level in a year. The daily sales pace in March was higher versus February by 7 percent.”
Inventory levels really get tight in the sub-$15,000 car market, where there is currently just a 27-day supply — 11 days lower than average. Looking at the top five selling used cars sold, it’s clear that consumers are hunting for a good deal as the average price was $23,861, which is 6 percent below the average used vehicle price.
A final reinforcement that buyers are shopping price above all else, they’re giving up security. Certified pre-owned vehicle sales fell 11.2 percent compared to March 2025, according to Cox.
That said, there were up 9.2 percent compared to February, which suggests the pickings got slim after the first round of tax refund checks hit in February. March’s CPO sales are estimated at 221,840, up from 203,086 in February. CPO share of total used-vehicle sales was 13.7 percent, down from 14.7 percent in February.
[Images: Ford, Dodge]
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