The Indicator from Planet Money · Wednesday, September 23, 2026
The used car market is experiencing significant price increases, with a three-year-old vehicle now costing over $32,000. This surge is attributed to a combination of factors, including the "price waterfall" effect from rising new car prices, persistent supply chain issues from the pandemic, and automakers shifting production away from affordable sedans.
“See, used car prices from that same time period, 2019 to now, they've gone up about 5.5% annually, accelerating past that average inflation number and new car price growth.”
“And today, the average used car that's just three years old goes for more than $32,000.”
“The first reason used cars are so expensive is something called the price waterfall. Used car prices follow new car prices. This isn't a new phenomenon.”