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Used-Car Prices Down in December

A Carfax index indicates that prices were higher than December 2024 but had been on a downward trend for the past few months.

January 5, 2026
lineup of cars

The average price of hybrids and EVs dropped more than $500 in December.

Credit:

Pexels/Erik Mclean

2 min to read


Despite the mid-year spike in used-vehicle prices, 2025 ended on a downward trend across almost all used-vehicle category prices, according to the Carfax Used Car Index. 

Prices dropped in December compared to November for luxury SUVs, hybrids and electric vehicles, SUVs, cars and pickup trucks. Average prices of pickup trucks and luxury SUVs fell by more than $450, SUVs by nearly $350, and cars by more than $170. Hybrids and EVs saw the biggest drops in price, or more than $500, which could be attributed to lower demand after the end of the federal tax incentive on Oct. 1. 

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“Lower demand has led many dealers to lower their prices on used EVs to make them more attractive to buyers,” said Carfax Editor-in-Chief Patrick Olsen.

He also predicted that a sizable number of EVs should be coming off lease this year due to the 2023 Inflation Reduction Act, which made leasing EVs more viable. 

“Since many leases are for three years, I expect those formerly leased EVs to return to the used market in 2026 and 2027,” Olsen said. 

Compared to 2024, however, the average price of used vehicles was higher in all categories except for vans and minivans, which were down more than $300 on average. Luxury cars were up by more than $2,000, pickup trucks more than $1,200, luxury SUVs more than $850, and hybrids and EVs more than $600.

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