After Years Of Weirdness, Used Car Prices Are Finally Getting Back To Normal
After Years Of Weirdness, Used Car Prices Are Finally Getting Back To Normal
Diccon HyattTue, May 26, 2026 at 9:48 PM UTC
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Credit: Michael Yanow / NurPhoto via Getty ImagesKey Takeaways -
An average used vehicle sold for 66% of its original retail price tag in the first quarter, down from 2022 but still above the pre-pandemic norm.
Vehicle shortages related to COVID-19 sent used car prices soaring, changing the financial calculus of vehicle ownership.
In a return to normalcy after years of pandemic-related weirdness, used cars are starting to get quite a bit cheaper compared to new ones.
That’s according to data from Edmunds released Tuesday, which showed the price for a three-year-old used car averaged 66% of its original Manufacturer's Suggested Retail Price in the first quarter of 2026, down from 69% in the first quarter of 2025. That’s a steep drop from 2022, when a typical used car still fetched 81% of its original retail price after three years. However, it’s still above its typical pre-pandemic level of around 60%.
What This Means For The Economy
Rising auto prices are one of many pain points for consumers facing steep increases in the cost of living since the pandemic.
The change represents a slow return to normalcy after the pandemic sent prices for used cars soaring. COVID-19-related supply chain problems restricted the availability of new cars, pushing up prices for both new and used models and overturning age-old assumptions about the finances of vehicle ownership.
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Since then, things have returned more to their historical norms, and used cars are starting to look like a better deal than new ones.
However, that’s not to say they are cheap. The average three-year-old used car cost $31,548 in the first quarter, inching toward its record high of $32,164 set in 2022. A new vehicle averages an MSRP of $51,323 as of April, according to Edmunds.
And don’t hold your breath waiting for prices to plummet back to pre-pandemic levels.
"Consumers in the used market face significant hurdles," Ivan Drury, director of insights at Edmunds, wrote in a blog post accompanying the data. "The likelihood of such a drop remains low."
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Source: “AOL Money”
