Fall 2025 Used Car Market Trends What Buyers and Sellers Need to Know

As we move into the final quarter of 2025, the U.S. automotive market is facing a unique combination of shifting consumer behaviors, economic pressure, and policy-driven urgency. Used car prices are falling, inventories are rising, and electric vehicles (EVs) are selling at a historic pace.

Whether you’re considering buying or selling, understanding current market dynamics can help you make the most of this moment. In this post, we’ll break down the latest data, highlight trends, and offer actionable insights to navigate today’s fast-moving auto market.

Used Car Prices Continue Their Descent

Used car prices have now declined for 17 consecutive weeks, bringing the average listing price to $25,512 as of September 2025. This steady downward trend marks a notable shift from the inflated pricing seen over the past two years.

Why Are Used Car Prices Falling?

Several factors are contributing to the decline:

• Inventory Growth: Supply has increased significantly, with total used car inventory now at 2.21 million units—the highest level so far this year.
• Stabilization in New Car Production: With supply chain issues largely resolved, new car availability has normalized, easing pressure on the used market.
• Interest Rate Pressure: As borrowing costs rise, many consumers are rethinking their budgets, leading to slower demand for higher-priced used vehicles.

For buyers, this is a promising opportunity to find deals on reliable models. For sellers, it’s more important than ever to price vehicles competitively and act quickly.

Interest Rates Are Reshaping Buyer Behavior

Interest rates have been climbing throughout 2025, and auto loans are no exception:

• Used car loan rates now average 14.12%
• New car loan rates average 9.43%

These higher rates are directly influencing consumer behavior. Shoppers are shifting their focus toward:

• More affordable vehicles under $30,000
• Fuel-efficient and hybrid models to offset long-term costs
• Brands known for reliability and low cost of ownership, such as Toyota, Honda, and Hyundai

While rising rates typically suppress demand, the overall volume of retail sales has remained strong, showing how resilient and adaptive consumers continue to be.

EVs and Plug-In Hybrids: Selling Fast Before Incentives Expire

EVs and plug-in hybrids are currently among the fastest-selling vehicles on the market. The reason? The federal EV incentive program is set to expire on September 30, and buyers are moving quickly to take advantage of the savings.

Key Trends:

• EV and plug-in hybrid sales are on track to set records in Q3 2025
• Demand is particularly strong for electric SUVs from Toyota, Lexus, and GMC
• Buyers are motivated not just by environmental concerns, but by economic incentives and long-term savings

This is a critical window for sellers of EVs and hybrids. With demand surging and inventories tightening, well-priced electric vehicles are being snapped up quickly.

Used Cars Are Selling Faster

The average days-to-turn—or how long a used vehicle sits on the lot before being sold—has dropped to just 40 days, down from 55 days late last year. This rapid turnover reflects a healthy used car market, especially for in-demand models.

Fast-Selling Segments:

• Compact and midsize sedans like the Honda Civic, Toyota Corolla, and Hyundai Elantra
• Compact SUVs and crossovers
• Fuel-efficient vehicles, both hybrid and traditional gas-powered
   

For sellers, this means the right vehicle, priced appropriately, can move quickly. For buyers, it reinforces the importance of acting decisively—especially on high-demand models.

New Car Market Holding Strong Amid Tariff Uncertainty

New vehicle sales rose 2.3% year-over-year in August 2025, a healthy increase given the broader economic environment. The breakdown shows where consumer priorities are shifting:

• Light truck sales jumped 11.4% year-over-year
• Passenger car sales declined by 9.2%

What’s driving this performance? In part, it’s consumer urgency—buyers are looking to lock in deals before federal EV subsidies expire and ahead of potential tariff increases that could push prices higher.

Industry analysts are warning that trade policy shifts may prompt some automakers to raise sticker prices in the coming months, especially those with global supply chains. This adds another layer of urgency for buyers looking to secure better pricing before year-end.

Luxury Models Under $30K Are Gaining Interest

As interest rates push buyers to seek greater value, the used luxury market—especially vehicles priced below $30,000—is seeing a resurgence.

Buyers who might have once considered a mid-tier new vehicle are instead opting for gently used premium brands, trading a new-car warranty for luxury features and long-term value.

Vehicles from brands like Lexus, Acura, and BMW are increasingly attractive at these price points, particularly for shoppers who care about performance and comfort but remain budget-conscious.

Market Movers: What’s Selling and What’s Not

Understanding which models are moving quickly—and which ones aren’t—can help buyers identify deals and help sellers time their listings strategically.

Top-Performing Vehicles:

• Electric SUVs from Toyota, Lexus, and GMC
• Fuel-efficient sedans, including the Honda Civic, Toyota Corolla, and Hyundai Sonata
• Family-friendly SUVs with hybrid options
   

Slower-Selling Models (Potential Buyer Deals):

• Jaguar F-PACE
• Maserati Grecale
• Dodge Hornet

These slower-selling models often come with room for negotiation, especially as dealerships aim to clear inventory before the end of the year.

Dealership Behavior: Discounts Are Coming

As inventories grow and the market softens in some areas, dealerships are ramping up incentives—particularly heading into Q4.

Buyers can expect:

• Autumn and winter discounts, particularly on current-year models
• Special financing or cashback offers on slow-moving inventory
• More flexible trade-in negotiations as sellers seek to close deals
   

Dealers are preparing for a strong finish to the year, and that means motivated pricing, especially in markets where inventory outpaces demand.

Key Takeaways for Used Auto Buyers

If you’re planning to buy a vehicle this fall, consider these strategic tips:

• Act before September 30 if you're considering an EV or plug-in hybrid—federal incentives are expiring.
• Focus on fuel-efficient and reliable models to manage long-term costs, especially if financing at higher rates.
• Research market pricing and inventory in your area to identify the best opportunities.
• Negotiate on premium SUVs or slower-selling models where dealerships have more flexibility.
   

Key Takeaways for Car Sellers

For those looking to sell a vehicle, the current market conditions offer both urgency and opportunity:

• List now—popular sedans and SUVs are selling faster than average.
• Emphasize vehicle reliability and fuel economy in your listings, as these are top buyer concerns.
• Capitalize on demand for EVs by marketing them before incentives expire.
• Stay competitive on price—inventory is growing, and buyers are comparison shopping more than ever.

The Bottom Line

Fall 2025 is shaping up to be a dynamic season in the car market. Used car prices are falling, EVs are surging, and both buyers and sellers are adjusting to higher financing costs. For buyers, this means an opportunity to find value—especially if you’re flexible and informed. For sellers, it’s still possible to command strong offers, but speed and pricing strategy are key.

Tariffs, incentives, and economic pressures will continue to shape the market into Q4. Those who act strategically—whether buying or selling—stand to benefit the most.

Looking to Buy or Sell a Car? BestBid Can Help

Whether you're planning to purchase a fuel-efficient sedan or sell your electric SUV, BestBid makes it easy. We provide transparent pricing, fast turnaround, and expert support every step of the way.

Let us help you make a smarter move in today's market.

Contact BestBid today for a free quote or to schedule an appraisal. Whether you're buying or selling, we’re here to help you get the best deal—backed by data, not guesswork.