Used-vehicle prices are on their way back up after two years of declines, thanks to limited supply.

An analysis of prices over the past year by iSeeCars.com shows a steady gain, recent average year-over-year price increases ranging from $317 in March to $630 in May. That represents a doubling from 1% to 2%.

The automotive search engine and research website examined 2.4 million vehicles ages 1 to 5 that sold in May 2024 and this past May. It said the inflation trend has been constant over the past year with the exception of November.

The average price in the researched population was $32,317 in May.

“If the trend continues we could see the average used car rising from $32,317 to $35,000 or more in the next few months,” the company said in its report.

Used electric vehicles have gone in the opposite direction, falling about 9% over the past year to an average of $31,110, the company said. Tesla has led the decline at an 8% brandwide drop. But the research showed used-EV prices are starting to stabilize. 

IseeCars pinned the market’s overall price inflation to continued effects from pandemic-era production slowdowns.

“The car market continues to suffer from a COVID hangover, with reduced new car production between 2020 and 2022 leading to fewer 1- to 5-year-old used cars on the market in 2025,” said iSeeCars Executive Analyst Karl Brauer. “There’s also been a higher percentage of lease customers buying out their vehicles at the end of the lease, further restricting the used car supply.” 

The BMW 4 Series, Infiniti QX60 and Porsche 718 Boxster saw the greatest price pumps during the year, iSeeCars said.

“This supply issue won’t resolve itself in the near term,” Brauer said, “suggesting we could continue to see used car prices grow over the next six months.”

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