Why the Used Car Market Is Better for Buyers Right Now
Wondering if now is a good time to buy a used car? Find out where used car prices are dropping and how to spot the best deals in the normalized 2025 market.
Mirko4 min read
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If you're wondering whether now is a good time to buy a used car, the short answer is yes—but the details matter more than ever. After the post-COVID spike that sent prices into the stratosphere, the used car market 2025 has settled into a sweet spot for buyers. Values are normalizing, inventory is recovering, and the gap between new and used pricing is widening again as incentives return on new cars. That means you can find real deals if you know where to look.
Where the Market Has Softened: Luxury and High-Trim Levels
The most dramatic price drops are happening in segments that soared during the pandemic: luxury cars and high-trim versions of mainstream models. For example, a 2021 BMW 5 Series that might have cost $55,000 used in 2022 can now be found for closer to $45,000—a drop of nearly 18%. Similarly, loaded Ford F-150 Lariats and high-end SUVs from brands like Land Rover have seen values slip as dealerships work through overstock. This is where used car prices dropping most aggressively, and if you're willing to buy a slightly older model (2020-2022), you can capture steep depreciation that the original owner absorbed.
Where Values Have Held Firm: Trucks and Hybrid SUVs
Not everything is a bargain. Full-size trucks like the Ford F-150 (especially lower trims) and hybrid SUVs like the Toyota RAV4 Hybrid still command strong prices. Inventory for these vehicles remains tight because demand hasn't softened—they're practical, efficient, and hold their utility. If you're targeting a 2021-2023 truck or hybrid, expect to pay within 10-15% of its original MSRP. That's still high, but it's a smarter buy than a brand-new model that will lose 20% the moment you drive it off the lot. The key is knowing your segment: a used Toyota Tacoma will depreciate slower than a used Audi Q7.
Why Buying Used Now Beats Buying Near the Top
With new car incentives rebounding—0% financing, cash rebates, lease deals—manufacturers are pulling buyers back to new cars, which is pushing used car inventory up and prices down. This creates a temporary window where buying used is actually more advantageous than it was a year ago. For instance, a 2022 sedan that cost $30,000 used last year might now be $26,000, while the new version is $28,000 with a $1,500 rebate. The spread is widening, and you can often get a nearly identical car for significantly less. But only if you check the vehicle's actual risk history. A price drop on a car with hidden damage or costly upcoming repairs is no deal. That's where a tool like Squeezed comes in: when you look at a specific car, a Squeezed report shows you how its market value compares to similar models and flags any structural or mechanical risk sources that could turn a good price into a bad deal.
How to Spot the Best Deals in This Market
Focus on vehicles that have depreciation-friendly characteristics: luxury brands, high-mileage demos, and models with a reputation for reliability (since those hold value but also offer long-term value). Use three data points: the average listing price for that model and year, the number of days on the lot (longer = more negotiable), and a thorough inspection. But here's the catch: public data only tells you the surface. The real risk—hidden accidents, odometer fraud, pattern failures—requires a deeper look. A Squeezed report does that in about a minute, combining auction history, recall data, and repair patterns into a single risk score.
What This Means for Your Timing
There's no reason to wait. The used car market trends indicate that while prices are dropping, they won't freefall forever. Supply is still constrained below pre-pandemic levels, and interest rates remain a factor. If you see a car that fits your budget and needs, and its risk profile is clean, act. The buyers who hesitate often pay more later or settle for a worse vehicle. The smart move is to arm yourself with the full picture before you negotiate.
When you're ready to look at a specific car, a Squeezed report gives you the risk picture in about a minute. It's the step between finding a car and making an offer.
