The U.S. used car market saw significant price shifts in August, with the average cost of used vans and minivans dropping by $680, while luxury cars experienced a surprising $500 increase, according to the latest Carfax Used Car Index. These movements highlight a market where consumer preferences continue to create unpredictable trends across different vehicle segments.
The decline in van and minivan prices brought the national average for the category to its lowest point since January. In stark contrast, the average price for used luxury cars climbed above $31,000 for the first time since July 2023, a notable jump for a category that typically sees only small changes every month.
Pickup trucks also saw a fairly substantial price cut. The average price for used pickup trucks fell by over $400 in August, offering some cost relief to buyers in that popular category. Meanwhile, prices for used SUVs and luxury SUVs were mostly flat compared to July. The hybrids and EVs category saw a slight increase of about $60, while regular cars, including sedans and hatchbacks, rose by just over $200.
Affordability Challenges
Affordability continues to be a major issue for all used car buyers even as a couple of popular segments saw price drops this month. With interest rates hovering between 7 and 14 percent, financing even moderately priced vehicles can strain household budgets, especially for those where credit score is an issue.
In addition, lower inventory levels compared to previous years are keeping prices higher, limiting options for shoppers looking for deals. Some new car buyers are being enticed by financing promotions, but tariff-driven price hikes are beginning to appear on 2026 models, narrowing those advantages. This is driving more buyers towards the used car market, but for many consumers, balancing needs and budget is becoming more complex as both financing and pricing pressures mount.
Regional Variations
Regional data revealed significant differences in price trends across the country. The Plains region (including states like Kansas, Nebraska, and the Dakotas) saw the most dramatic drop in van and minivan prices, with an average decrease of $1,100. The Midwest also experienced a substantial $800 decline in the same category.
Luxury cars saw their biggest price jump in the Southwest, where the average cost increased by nearly $1,000. The West Coast followed with a more than $900 increase for used luxury cars. In the Northeast, luxury cars were up by approximately $450, while the Mid-Atlantic saw a modest increase of about $265 for regular used cars.
Market Insights
Carfax notes that while prices are volatile, this can create opportunities for owners looking to sell. Particularly for popular segments like SUVs and pickup trucks that continue to command strong values.
The index also points out that vehicles with reported damage can be a good deal for shoppers, provided they are inspected by a trusted mechanic and the repairs are sound. Minor damage can result in discounts of a few hundred dollars, while major damage can lower a vehicle’s price by thousands.
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