Used vehicle prices across North America are projected to remain high over the next year, as supply shortages stemming from the COVID-19 pandemic continue to influence the market, according to a new analysis from J.D. Power. The report finds that disruptions in vehicle manufacturing during global shutdowns have had long-lasting effects on both new and used car availability, sustaining upward pressure on prices.
During the pandemic, widespread factory closures and global supply chain breakdowns sharply reduced new vehicle production. This led to a significantly lower number of new cars entering the market, which in turn constrained the flow of trade-ins and lease returns that typically replenish used vehicle inventories. The resulting structural shortage has continued to shape pricing dynamics in the used car segment years later.
J.D. Power estimates that the average price of a used vehicle in the United States will reach $30,166 in 2026, marking an increase of about $860 compared with the previous year. Although the pace of price growth has slowed from the peak pandemic period, values remain elevated relative to historical averages, reflecting ongoing supply limitations.
The report also projects 16.3 million new passenger vehicles and trucks will be sold in the United States in 2026. Analysts say this gradual increase in new vehicle production and sales could help ease pressure on the used car market over time by improving the supply of vehicles eventually feeding into the secondhand segment, contributing to a more stable pricing environment.
However, the report notes that price trends vary significantly across different vehicle categories. Fuel efficiency continues to be a key factor supporting resale value, particularly as consumers face higher fuel costs and ongoing uncertainty in global energy markets. Vehicles with lower operating costs are increasingly preferred in the used market, helping them retain value more effectively than less efficient models.
At the same time, demand remains strong for performance-oriented gasoline vehicles, which continue to command premium prices in the used market. Models such as the Toyota Supra and Porsche 911 are especially sought after in the five-year-old vehicle segment, driven by brand prestige, driving experience, and sustained enthusiast demand.
Overall, analysts describe the market as increasingly segmented, with practical, fuel-efficient vehicles and high-performance models both maintaining strong demand for different reasons. While improved new vehicle supply is expected to gradually stabilize used car prices, consumer preferences will continue to play a major role in determining which vehicles retain the highest resale value in the years ahead.
