If you’re looking to buy a used car, you may want to rethink your purchasing timeline. April is likely to be the worst month of the year to do so. Used car prices remain high, and are likely headed even higher as seasonal influences drive up demand. Heres what buyers and sellers should consider before entering the used car market in April 2025.
Used Car Prices Will Rise in April
In spring of 2025, the average used car price is $25,128. Unfortunately, prices are expected to climb even higher in April. Why? It’s a perfect storm of factors: tax refunds are hitting bank accounts, spring fever is in the air, and summer road trips are on the horizon. The demand for used cars surges every April, making it a tough time for buyers looking for a deal.
The biggest headwind for used car buyers in April? Seasonality. As the above graph of used car prices shows, prices rise like clockwork each April. Warmer weather (and Uncle Sam’s paychecks) bring buyers out in full force each year as winter comes to an end.
Adding fuel to the fire, the lingering effects of the pandemic-era production shortages are still impacting the market. Between 2020 and 2023, 19.6 million vehicles were never built due to supply chain disruptions. That’s nearly 20 million fewer used cars making their way into the market over time, and the reduced supply continues to push prices higher.
Black Book Data Shows Weekly Price Increases
Recent data from Black Book shows that used car prices are climbing sharply.
“The market gained momentum last week, recording the largest single-week increase since early April of last year. Bidder activity was strong nationwide, driven by discussions about tariffs—despite the one-month reprieve for the auto industry—and typical signs of a robust spring buying season, resulting in larger-than-usual increases.”
At wholesale auctions, Black Book’s latest weekly report continues notable trends we’ve seen over the past month:
- 0-to-2-year-old used cars and trucks are seeing prices rise
- 8-to-16-year-old used cars and trucks have falling prices
Previous weeks have shown similar trends in the wholesale used car market. This tells us that newer, low-mileage used cars are getting more expensive, while older, higher-mileage vehicles remain more negotiable. If you’re set on buying a used car this spring, consider expanding your search to older models with more miles to avoid the sharpest price increases.
The Best Used Car Deals Right Now
While the overall used car market is tough for buyers, there are a few segments where deals still exist:
- Older, higher mileage vehicles – These cars aren’t seeing the same price surges as low-mileage used cars. Be sure to always get a pre-purchase inspection before you buy ANY used car!
- Used Electric Vehicles (EVs) – Prices have plummeted, with many used EVs available for under $25,000. Plus, if you buy a used EV under $25K, you may qualify for a $4,000 federal tax credit, regardless of battery sourcing or country of origin. Remaining incentives for the purchase of new EVs have much more strict requirements.
Beware of High Interest Rates
Financing a used car in 2025 is no bargain either. The Federal Reserve’s 2024 rate cuts did little to ease auto loan rates. It’s crucial for drivers to consider the impact of today’s loan rates before setting a budget. You may be shocked by how much your payment increases with APRs this high. The average used car loan APR is 14%, but if you have poor credit, you could see rates closer to 20% APR.
To put that into perspective, let’s say you finance $25,000 over 72 months at 14% APR. Over the life of the loan, you’ll pay $12,090 in interest alone—raising your total cost of ownership by nearly 50%.
If you have good credit, you might be better off considering a new car with a low APR offer. Right now, there are 34 models available with 0% financing and dozens more with rates under 3% APR. Even though new cars cost more upfront, lower interest rates could save you thousands over time.
The Upside: April Is a Great Time to Sell a Car
If you’re thinking about selling or trading in your car, April is one of the best times to do it. Rising used car prices mean you’ll get top dollar, especially for low-mileage models that are in high demand. Take advantage of the seasonal market trends and get the most money for your vehicle while demand is strong.
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Final Thoughts: Should You Buy a Used Car in April?
For most buyers, waiting until after the spring price surge cools down is the best strategy. If you have to buy now, consider shopping for older, high-mileage cars or highly-rated used EVs, and compare APR offers carefully to avoid overpaying on interest.
For sellers, the time is now. April’s used car prices will offer your best bet to maximize resale value before the market levels off later in the year.
Thinking about buying or selling? Use CarEdge Insights to track market trends and find the best deal possible. We’re consumer advocates on your side!
