For most segments, used-car prices were more expensive at the end of 2025 than they were a year earlier, with a couple categories climbing four digits.

But according to analysis around the latest Carfax Used Car Index, prices fell sequentially in five of seven segments last month — with affordability and availability possibly on the mend.

Starting with the year-over-year data, Carfax said the most significant uptick in used prices at the end of December was for luxury cars, which were more than $2,000 (or 8%) pricier.

Pickup truck prices climbed 3.7%, or more than $1,200, year-over-year, while luxury SUVs were up 2.6%, more than an $850 uptick, Carfax said.

Meantime, hybrids/EVs saw a 2.1% (over $600) hike from December 2024. Vans/minivans were the sole decliner, dropping 1.6% (more than $300), Carfax said.

But used-vehicle prices are easing on a month-over-month basis.

Five of the seven segments showed softer prices than they did at the end of November, Carfax said, with all five having declined for at least three straight months.

For instance, luxury SUV prices have dropped sequentially for five straight months, with the total price decline exceeding $1,200 in that span.

With federal tax credits having expired, hybrid/EV prices have also declined five straight months. They’re now more than $1,100 cheaper since the decline began, Carfax said.

Not to mention, there is likely to be a “sizable number” of off-lease EVs hitting the used market this year, Carfax said, which could lead to good deals.

Prices for both SUVs and cars have dropped sequentially for four straight months, while pickup trucks have fallen for three.

“There are other factors, as well, that could be helping with the drop in used-car prices: The used-car market is starting to climb out of the hole created when car leasing dropped back in 2021,” Carfax editor-in-chief Patrick Olsen wrote in the analysis.

“It was still low in 2022, but it started picking up in 2023. For used-car shoppers, that means there should be a steady increase in the availability of 3-year-old models with low-ish mileage that shoppers find appealing.”

A potential hike in off-lease numbers was one of the positives spotted in the U.S. Automotive Forecast released by J.D. Power on Dec. 26, which dissected data from both the new- and used-car markets.

On the pre-owned side, average prices were at $29,571, relatively steady (up $8) year-over-year, J.D. Power said.

Trade-in equity was off $327 from December 2024, as it headed towards an average of $7,903. J.D. Power was anticipating nearly 27% of trades would have negative equity in December, which was up 4 percentage points from the prior year.

Thomas King, president of OEM solutions at J.D. Power, said in the analysis that the average used-car price, “reflects the continued low supply of recent model-year used vehicles due to lower new-vehicle production during the pandemic, fewer lease maturities, and manufacturers moderating discounts.”

He added: “A rise in used-vehicle prices is good news for new-vehicle buyers with a trade-in, although average trade-in equity in December is down a modest $327 year over year to $7,903. The number of new-vehicle buyers with negative equity on their trade-in is expected to reach 26.9% — an increase of 4.0 percentage points from December 2024.”

King forecasts that there will be a variety of headwinds and tailwinds this year.

He notes: “Among the positives, anticipation of lower interest rates, an increase in the number of leases maturing, and the recalibration of OEM production schedules to accommodate new tariff realities and EV requirements will help boost demand and reduce pressure on OEM and retailer profit margins. Conversely, new vehicle affordability remains at an all-time low and used vehicle values will be under pressure throughout 2026. In sum, these dynamics set the stage for a more balanced and potentially stronger performance as 2026 progresses.”