Car and truck leases plummeted in 2022. Three years later, Edmunds expects leased vehicles to make up only 18% of used car sales in 2025, the lowest figure since the Great Recession era.

The drop in used car prices has been a major factor in the slowing of inflation, but a sustained rise in used car prices could make it more difficult for the Fed to pull back on rate hikes.

Leasing dropped sharply in 2022 and 2023, meaning fewer 3-year-old used cars are returning to dealerships in 2025. As supply shrinks, price goes up. Why used car prices are rising in 2025: What ...

Used car sales were up 6 percent from June to July, and more Americans said they planned to purchase a car within the next six months than at any point over the past nine months.

Dealers started pulling back on their inventory of used cars as prices were declining late last year and into January. Much of the decline began late last year as a larger supply of new cars ...