by Used Car Market Dynamics
The used car market was extremely active for several years after 2019, driven by pandemic restrictions and shortages that caused a sharp price increase. In 2023, the market experienced a decline, but since then it has gradually gained momentum, with growth in both demand and average transaction prices.
In the third quarter of 2025, a slight change is observed. Despite continued price growth, buyers are now making decisions more slowly than in previous years. In another unexpected turn, electric vehicles are now selling faster than models with internal combustion engines.
According to Edmunds, the average three-year-old car spent 41 days at dealers in the third quarter. This is more than the 37 days last year and is the slowest “days to sale” pace since 2017.
Why is the Sale Slowing Down?
The most likely reason is the constant growth of transaction prices. The average price of a three-year-old car reached $31,067 in the third quarter of 2025, which is five percent higher than the $29,578 a year earlier, and almost $10,000 higher than in 2017, when similar used models cost around $21,000.
Pricing and Sales Pace of Three-Year-Old Used Cars
| Metric | Q3 2024 | Q3 2025 |
| Average Transaction Price (ATP) | $29,578 | $31,067 |
| Average Days to Sale (DTT) | 37 days | 41 days |
Edmunds
Rising prices mean that buyers are weighing their options more carefully, comparing used models with new ones, which often include incentives and warranties. The last time used cars had an average price of over $30,000 was in 2022, when the pandemic shortage caused a rapid surge in demand.
Now that supply chain issues are largely in the past, buyers seem more inclined to pause their decision and carefully weigh their options before purchasing.
Which Cars Sell the Fastest?
However, not all aspects of the market are cooling down. Electric vehicles have quietly become the fastest-selling segment of the used market. They spend on average only 34 days on the dealer lot.
Average Days to Sale by Powertrain Type (Three-Year-Old Cars, Q3 2025)
| Powertrain Type | Average Days to Sale |
| Electric Vehicle | 34 days |
| Hybrid | 40 days |
| Diesel | 41 days |
| Gasoline | 43 days |
| Plug-in Hybrid | 47 days |
Edmunds
Hybrids need 40 days, diesels need 41, and gasoline cars need 43. Plug-in hybrids actually require the most time – 47 days to sale. Undoubtedly, lower mileage and attractive prices play a role here.
Electric Vehicle Momentum
Used electric vehicles sold in the third quarter had an average mileage of 35,661 miles and a transaction price of $29,911. Almost two-thirds of all three-year-old electric vehicles were priced in the range of $20,000 to $30,000. In the rest of the used car market, only 42 percent fall into this price range.
Electric vehicles in this range also typically have less wear and tear, as approximately 66 percent of them have less than 40,000 miles on the odometer. Essentially, electric vehicles now offer the best value in the used market. At the same time, they make up only 1.6 percent of the total used inventory.
Despite the limited availability of 2022 electric vehicle models, they still made up eight of the 19 fastest-selling three-year-old vehicles, reflecting growing buyer interest, even despite cooling demand for new models. Deals exist; they just might be hard to find.
Electric vehicles such as the Hyundai Ioniq 5, Volkswagen ID.4, and Ford Mustang Mach-E offer significant savings compared to their original prices, often being more than $25,000 cheaper than new examples. On the other hand, ICE vehicles like the Toyota GR Supra and Lexus NX 350h have unexpectedly retained their value well.
19 Fastest-Selling Models in Q3 2025
| Model | Fuel | Days to Sale | 3-Year-Old Car Price | Original Price | Used vs New |
| Tesla Model S | EV | 22 | $44,621 | $115,356 | -$70,735 |
| Tesla Model 3 | EV | 24 | $24,447 | $57,009 | -$32,562 |
| Cadillac CT5 | gas | 26 | $31,549 | $52,179 | -$20,630 |
| Tesla Model Y | EV | 26 | $27,624 | $69,017 | -$41,393 |
| Lexus NX 350h | hybrid | 27 | $40,575 | $49,520 | -$8,945 |
| Lexus NX 250 | gas | 28 | $32,161 | $42,308 | -$10,147 |
| Lexus RX 350L | gas | 29 | $39,773 | $59,049 | -$19,276 |
| Toyota Corolla Hybrid | hybrid | 29 | $20,238 | $26,823 | -$6,585 |
| Kia Rio | gas | 30 | $14,203 | $18,912 | -$4,709 |
| Lexus NX 350 | gas | 30 | $36,573 | $49,895 | -$13,322 |
| Hyundai Ioniq 5 | EV | 30 | $23,964 | $50,660 | -$26,696 |
| VW ID.4 | EV | 31 | $23,145 | $49,071 | -$25,926 |
| Toyota GR Supra | gas | 31 | $50,322 | $57,796 | -$7,474 |
| Honda Accord | gas | 31 | $24,895 | $32,096 | -$7,201 |
| Audi e-tron | EV | 32 | $28,322 | $77,342 | -$49,020 |
| Honda Passport | gas | 32 | $31,446 | $43,855 | -$12,409 |
| Kia EV6 | EV | 32 | $24,447 | $54,167 | -$29,720 |
| Ford Mustang Mach-E | EV | 32 | $26,920 | $57,018 | -$30,098 |
| Toyota Corolla Cross | gas | 33 | $23,902 | $28,245 | -$4,343 |
Edmunds
These trends indicate that the used car market is undergoing structural changes, where electric vehicles are beginning to play an increasingly significant role. Although overall demand is slowing due to rising prices, specific categories such as electric vehicles demonstrate resilience due to their attractive price-to-quality ratio. This may be a sign that consumers are becoming more open to alternative types of transport, especially when they offer significant savings compared to new counterparts. Such dynamics might indicate the beginning of a broader transition to electric vehicles in the used market, which could have significant implications for the future of the automotive industry as a whole.
