Used Car Prices Rise Due to Strong Demand, High Interest Rates, and Delinquency
Used car prices have increased by 3% over the past year, reaching an average of $26,342 in April 2026. This rise is attributed to strong demand outpacing supply, high borrowing costs due to elevated interest rates, and a surge in delinquency rates for auto loans. The cost of financing used cars has also risen significantly, with prime borrowers paying around 9% APR and subprime borrowers facing over 19%. Delinquencies on subprime auto loans have reached an all-time high. Experts advise buyers to keep loan terms short (60 months or less) and seek preapproval from banks before visiting dealerships. Kelley Blue Book suggests focusing on mainstream brands like Toyota, Honda, Ford, Chevrolet, and Nissan for better affordability.
Topics: auto loans demand and supply inflation interest rates used cars