Key insights
- Used car prices are normalizing, with three-year-old vehicles now averaging 66% of their original MSRP, down from a peak of 81% in 2022. While this indicates a return to pre-pandemic trends and potentially eases some consumer cost pressures, prices remain elevated compared to historical norms. This trend suggests a gradual easing of inflation in a key consumer goods category, but not a sharp decline. The automotive sector is seeing a shift back towards traditional value propositions for used vehicles.
%3Amax_bytes(150000)%3Astrip_icc()%3Aformat(webp)%2FGettyImages-2277553026-6c0981d7a21b4b2086fb8ffb093b8bfb.jpg&w=3840&q=75)
Get personalized, AI-powered answers built on 27+ years of trusted expertise.
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 2025.1 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%.
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.
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.2
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."
Get personalized, AI-powered answers built on 27+ years of trusted expertise.