J.D. Power report: used car prices up from pandemic supply issues

According to a new report from J.D. Power, rising used car prices in North America stem primarily from reduced market supply during the pandemic years. Factory shutdowns and supply chain disruptions led to fewer new vehicles being produced.

The report states that the average used car price in the U.S. will reach $30,166 in 2026, which is $860 higher than the previous year.

J.D. Power forecasts that 16.3 million new passenger cars and trucks will be sold in the U.S. in 2026. This should benefit the stability of the used car market, as increased new model availability will ease pressure on used vehicle prices.

It's noted that due to rising fuel costs and geopolitical uncertainty, vehicles with high fuel efficiency tend to hold their value better. However, they aren't the only ones maintaining strong resale values currently.

For instance, used car buyers are also willing to pay more for gasoline-powered sports cars. Models like the Toyota Supra and Porsche 911 remain among the most sought-after five-year-old vehicles.