Due to the lack of new cars during several years, used cars have risen in price accordingly. And at the edge of 2025 we continue to feel the effects of this issue, with new and pre-owned car prices remaining high.

The marketing experts from the Indy Auto Man used car dealer, IN, researched the estimated used cars values in Indianapolis. Cars of 11 brands on the market have risen in price within the last 3 years by more than 30% over the year. RAM pickups open this TOP11 with + 40.5%. Among these 11 brands there are also Ford (+ 38.7%), VW (+ 35.1%), Toyota (+ 30.5%), Hyundai and Kia (both + 30.1%), and luxury Aston Martin (+ 38.1%).

• One of the primary factors that will continue to influence the U.S. car market in 2025 is economic instability. The aftermath of the COVID-19 pandemic, combined with ongoing inflationary pressures and rising interest rates, will likely lead to continued volatility in vehicle prices. Over the last few years, the U.S. car market has seen unprecedented price hikes, as supply chain disruptions and the global chip shortage led to inventory shortages and higher prices.

While the situation is expected to improve somewhat in 2025, it’s unlikely that prices will return to pre-pandemic levels. New car inventory is expected to rebound gradually as manufacturers work through supply chain bottlenecks, but the reality is that production timelines may still be lagging, especially for certain models or more specialized vehicles. This means that prices, particularly for new cars, may fluctuate as inventory levels fluctuate, depending on demand and manufacturing speed.

On the used car side, prices could see a more significant drop as new inventory becomes more readily available. However, the used car market may still face price volatility due to ongoing demand from consumers who prefer more affordable alternatives to new cars. This competition for vehicles could cause periodic spikes in prices for popular models, particularly as global events continue to affect production and logistics.

The good news is that the price tags for used cars have stabilized and even gone down a little at the end of the year, which is traditionally for the auto market. Most dealerships try to support increased demand and offer the most valuable conditions.

• Another significant trend driving market fluctuations in 2025 will be the continued rise of electric vehicles (EVs). Statista.com predicts the global steady growth of 6.63% for the 2025-2029 years. As governments push for more sustainable solutions and consumers become increasingly eco-conscious, demand for electric and hybrid cars will grow. Incentives like federal tax credits, state rebates, and other subsidies aimed at encouraging EV adoption will help make these vehicles more accessible to a broader range of consumers.

This shift toward EVs is already happening, but by 2025, the market will likely see more significant growth in EV sales, as automakers ramp up production and new models become more affordable. For retailers, this could mean a shift in the types of vehicles that are most in demand. Traditional combustion engine vehicles could experience less demand in comparison to electric and hybrid models, especially as charging infrastructure improves and range anxiety diminishes.

On the flip side, the increased popularity of EVs could lead to a decrease in the availability of certain traditional models, particularly in the used car market. With automakers investing more heavily in EV production, some classic internal combustion engine models may become more scarce, increasing their market value—especially for collectors and enthusiasts. The fluctuation in availability and demand for gas-powered vehicles could create opportunities for savvy buyers and sellers to capitalize on rare finds in the used car market.

The current situation shows that today is the best time to buy a used car. After a while, new cars will be sold on the secondary market in a smaller volume. This will additionally raise prices while the choice will be much less. If you buy a 2-3 years old car now, you may sell it in a couple of years for the same price or even gain several hundreds USD.