Used-vehicle listing prices rose 1.3% in June, averaging about $350 per vehicle, according to CARFAX's monthly used car index published June 26. In May, prices rose 3.1% — roughly $900 per vehicle. Same market, one month apart, less than half the momentum.
That's not the market falling. The average used car now lists at $26,918, up about 6% compared to a year ago. But the rate at which prices have been climbing slowed sharply heading into summer. That shift matters for timing.
What Drove May's Spike
May's 3.1% gain was driven by tariff-panic buying. When the Trump administration's 25% auto import tariffs pushed average new vehicle prices up more than $1,300 per Cox Automotive data, buyers who couldn't absorb new car prices shifted into the used market hard. Supply tightened. Dealers held firm on prices. Wholesale values at Manheim hit 213.9 on the index, their highest reading since summer 2023.
The demand wave didn't vanish in June, but it moderated. Non-adjusted wholesale prices fell 0.8% in the first half of June compared to May, per Manheim's mid-month report. Retail listing prices decelerated from there. The adjusted index stayed positive (+0.6%) because older inventory was cycling out, but the directional signal is the same: June cooled.
How Each Segment Moved
Not every category is moving together. EVs are the outlier. Every other segment is converging toward flat.
| Segment | YTD Price Change (Jan–Jun 2026) | June Monthly Trend |
|---|---|---|
| Electric vehicles | +$3,600 (+11.9%) | Rising; forecast to drop H2 |
| Hybrids | All-time high ($38,800 avg) | Still elevated; no relief |
| SUVs and trucks | +$1,500 | Holding, slight softening |
| Sedans and cars | +$1,350 | Most negotiable right now |
Sources: CARFAX Used Car Index, CarGurus 2026 Mid-Year Market Report, Edmunds Q1 2026 Insights.
Sedans — the market's biggest dealmaking segment — saw the smallest six-month gain and are continuing to soften. If your goal is negotiating room, that's where it's happening. SUVs and trucks have held up better, but even they're seeing less upward pressure than they did in spring.
EVs are the strange case. Used electric vehicle prices have climbed nearly 12% YTD, the opposite direction from expectations. The expiration of the federal used EV tax credit in September 2025, combined with a smaller buyer pool, created a short-term supply crunch. Edmunds projects that as affordable new EV options arrive later in 2026, used EV prices will fall 5–10% by year's end. Buyers who can wait until Q4 may get better EV deals than anything available now.
Hybrids are a different story entirely. The average used hybrid lists at $38,800, an all-time high per CarGurus' 2026 Mid-Year Market Report. Demand is up 34% year over year. Supply can't keep up with three-year-olds coming off lease because so few hybrids were leased in 2022 and 2023. If you want a used hybrid, there's no summer discount coming.
The Supply Picture
Dealer inventory averaged 45 days of supply in June, per Kelley Blue Book data — essentially balanced. The spring buying surge drove supply tighter earlier in 2026; it's rebuilt since. For buyers, that means less "take it or leave it" than May.
The off-lease wave is arriving in stages. Edmunds projects 25.7% more off-lease vehicles returning to market in 2026 compared to 2025 — roughly 500,000 additional units. Most of that volume comes in Q3 and Q4, as three-year leases signed during the post-pandemic peak in late 2023 mature. It hasn't fully hit the retail floor yet, but it's coming. The bulk of it is compact SUVs and sedans, which aligns with where prices are already softening.
Summer seasonally favors buyers on wholesale pricing. Tax refund season drives strong spring retail demand, which triggers trade-ins and increases auction supply — and then that wave passes. Wholesale prices tend to dip from late June through August. Retail prices follow, but with a lag.
What This Actually Means for Buyers
The June deceleration doesn't flip the market from a seller's advantage to a buyer's advantage overnight. Used car prices are still up 6% year over year. But the pace has clearly shifted, and the next three months are likely the best window of 2026 for most buyers.
If you're shopping for a sedan, now is about as good as it gets. Supply is adequate, prices are flat, and dealers have less leverage than in spring.
If you're shopping for an EV and can wait until Q4, the data suggests patience pays. More supply hits the market as 2023 leases return, and new affordable EV options put further pressure on used prices.
If you're shopping for a hybrid, the math doesn't change. Prices are at records, demand is high, and the supply shortage is structural, not seasonal. Waiting won't help.
If you're shopping for an SUV or truck, you have more time than spring buyers did. Inventory is healthier, and prices are softening at the margin. You're not getting a deal, but you're also not fighting for the last unit.
Frequently Asked Questions
Are used car prices going down in 2026? Not broadly. The average used car lists at $26,918, up 6% from a year ago. But the rate of increase has slowed significantly: 1.3% in June vs. 3.1% in May. Prices are rising slower, not falling. Some segments, like used EVs, are projected to drop 5-10% by late 2026 as new affordable EV options pressure the market.
Is summer a good time to buy a used car? Summer is historically better than spring for used car buyers. Spring tax refund demand drives prices up and tightens supply. By June and July, that demand wave passes, wholesale prices soften, and dealer inventory rebuilds. The 45-day supply average in June 2026 is meaningfully more balanced than the spring market.
Which used car segment has the best deals right now? Sedans are the most negotiable segment in summer 2026. YTD price gains have been the smallest of any category (+$1,350), supply is adequate, and demand is softer than SUVs. Used EVs look attractive on sticker today but may fall further in Q3/Q4, so patient EV buyers might benefit from waiting.
CarScout's market pages track live price trends by model, so you can see whether a specific vehicle is moving up or down before you make an offer at /market.