The average price paid for a used car in the United States fell to $25,287 in February, marking a 1.1% decline from January, according to new data from vAuto, a dealership software provider owned by Cox Automotive, the parent company of Kelley Blue Book.
Analysts at Cox Automotive attributed the month-over-month drop largely to weakening prices in the SUV segment, which accounted for nearly half of all used vehicle sales during the month. The continued softening in this category played a significant role in pulling overall prices lower.
Looking ahead, market dynamics could shift again in March as gasoline prices rise sharply following the onset of the Iran conflict at the end of February. Higher fuel costs often influence consumer preferences, potentially affecting demand across different vehicle segments.
Seasonal factors are also expected to support used car sales in the coming weeks. The market typically sees increased activity during tax refund season, when many Americans use their refunds toward vehicle purchases. Dealers appear prepared for this surge, with inventory levels 1.6% higher than the same period last year.
However, affordability remains a persistent challenge at the lower end of the market. Vehicles priced under $15,000—typically older models with higher mileage—are in particularly short supply. Dealers currently hold just a 31-day supply of these vehicles, which is nine days below the industry average for used car inventory.
Brand concentration remained strong in February, with Ford, Chevrolet, Toyota, Honda, and Nissan collectively accounting for nearly half of all used vehicles sold, underscoring their continued dominance in the secondary market.
