Used Car Prices Spike Sharply as Gas Prices Skyrocket Across the US
Salt Lake City – Used car prices are climbing fast, with the average resale price hitting about $25,550, up roughly $1,500 in just one month, according to data shared with the KSL Investigators by CARFAX. This surge is occurring even as gasoline prices soar, defying traditional market expectations.
Em Nguyen, spokesperson for CARFAX, expressed surprise at the rising demand despite climbing fuel costs. “We were absolutely surprised when we saw that gas prices were going up, but the demand was still going up as well,” Nguyen said.
Three Key Factors Fueling the Soaring Demand
Nguyen detailed three major drivers behind the surge in used car sales: First, many buyers are armed with increased cash for down payments, boosted by recent tax refunds. Second, inventory remains historically tight after pandemic disruptions slowed new car production. Third, tariffs on new 2026 vehicle models are pushing new car prices higher, which in turn inflates used car values as buyers seek alternatives.
The ripple effect of tariffs and supply chain constraints is leaving used car shoppers with fewer options while paying more than ever.
Gas Prices Shift Buyer Preferences Toward Fuel Efficiency
Nguyen also noted a significant spike in interest for fuel-efficient vehicles, including hybrids and electric vehicles (EVs), likely driven by climbing pump prices. “About a month ago, there has been a spike in the interest in fuel efficient vehicles,” she said. “And we think, of course, that gas prices have a lot to do with that.”
This trend holds true nationwide and has particular relevance to South Carolina drivers concerned with rising transportation costs amid variable gas prices.
What Buyers Need to Know Before Purchasing a Used Car
Used car buyers, especially in states like Utah where sales are typically “as is,” must exercise extreme caution. Nguyen emphasized the importance of vehicle history reports, which can reveal accidents, maintenance records, and mileage discrepancies that could affect the car’s value and safety.
“The battery for the EV is very important. It’s what runs the whole vehicle,” Nguyen warned, urging buyers to verify warranties thoroughly. Replacing a battery can cost thousands, making warranty transferability a critical consideration.
Investing in an independent mechanical inspection—usually costing $150 to $200—can also protect buyers from hidden defects that history reports might miss, potentially saving thousands in future repairs.
Takeaways for South Carolina and Nationwide Buyers
As used car prices rise sharply, shoppers should:
- Shop broadly across different models, vehicle years, and regional markets to find competitive prices.
- Pull the vehicle history report ($30 to $45) before finalizing a deal.
- Have a trusted mechanic inspect the car to uncover potential issues.
- Confirm the status and transferability of manufacturer warranties, especially on EVs.
With used car prices increasing rapidly and demand surging amid high gas prices, buyers nationwide—including those in South Carolina—must act swiftly yet cautiously in today’s market.
What’s Next?
Experts expect used car prices to remain elevated as new car production challenges continue and tariffs on upcoming models persist. Buyers should expect a competitive market in the coming months, with increasing interest in fuel-efficient and electric vehicles likely to grow as gas price pressures show no sign of easing.
“Used car prices are moving quickly, so shop around and don’t rush decisions in today’s market,” advises Em Nguyen of CARFAX.
The SC Journal will continue monitoring supply shifts and pricing trends to keep South Carolina drivers informed during this volatile automotive market.
