CarEdge Insights
Summer is here, and for used car shoppers, we’re finally seeing a shift. According to the latest data from Black Book, wholesale used car prices have now dropped for three consecutive weeks. And last week, the rate of decline was double the seasonal average. That’s a strong indicator that retail prices could start falling by July or August.
But what comes next depends largely on the new car market. Let’s take a closer look at what buyers and sellers should expect from the used car market this summer.
Wholesale Prices Are Dropping – Retail Could Be Next
Used car values typically trail wholesale trends by a few weeks. When auction prices fall, retail prices tend to follow 6–8 weeks later. That puts us on track for softer pricing in the second half of summer 2025. Here’s a look at wholesale used car price trends in 2025, showing that prices are dropping more quickly in June:
What’s behind the shift?
- Auction values are falling faster than expected – This summer’s decline is happening at twice the normal rate, a clear sign that dealers are feeling pressure.
- The spring rush is over – With automakers facing cooling demand and new tariffs, price hikes have slowed. If new car sales stall, that could pull used car prices down even further.
- Inventory is rebounding – Both new and used car lots are better stocked than this time last year, giving buyers more options and dealers less leverage.
According to CarEdge co-founder Ray Shefska, there’s still a wildcard in play: what happens with new car pricing.
“The only caveat,” Ray explains, “is what happens with new car prices. Do new car prices continue to go up, which would pull used car prices up as well, or does the new car market grow cold, which should lower used car prices?”
Right now, all signs point toward a cooling new car market. If that continues, used car shoppers could soon have more negotiating power. But is the possibility of slightly lower prices worth delaying your purchase? Let’s get into what Ray has to say about that.
Should You Buy a Used Car Now?
If you’re shopping this summer, here’s advice from CarEdge’s Ray Shefska:
“When you find a car that checks your boxes at a fair price, this summer is a good time to go ahead and buy. The key is to do your homework and ensure you’re getting a fair deal. Don’t rush into a purchase, especially as prices are on the downtrend.”
Trying to time every market shift is tough. What’s more important is that you do your research and use car buying tools to ensure you’re getting a fair price. Shop around for financing rates, and never agree to pay for forced add-ons.
🔍 Don’t skip the inspection. The average used car in America now has over 70,000 miles on the odometer. A Pre-Purchase Inspection (PPI) is essential to avoid buying a problem car.
Grab Your FREE Used Car Buying Toolkit – Window Sticker, Target Price, and More
If You’re Selling, Time Is Running Out
For private sellers and those trading in a vehicle, this summer may be your last chance to get a top-dollar offer before prices slide further.
- Trade-in values are declining – As auction values fall, dealers are revising their offers downward.
- More supply = more competition – With more vehicles hitting the market, your car may not stand out like it did six months ago.
If you’re on the fence about selling, now’s the time to make your decision.
The Bottom Line: The Market Is Turning
If you’re buying, it’s a good time to monitor used car market trends. Used car prices could continue trending downward as summer progresses. For sellers, acting sooner rather than later can help lock in the best value before the market softens further. It’s due time to see how much your car is worth. And if you’re just keeping an eye on the market, pay close attention to both new and used car pricing, as the direction of the new car market will heavily influence what happens next.
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