Over the last few years, the used car market has seen price spikes that surprised even seasoned industry experts — and in 2025, those elevated prices haven’t fully come back down. So what’s going on?
Used car prices surged during Covid-19 and are still unusually high. What is keeping the costs elevated? Well, there are a few key reasons:
Pandemic-era production gaps/ supply chain issues continue to impact used car inventory
High demand and limited supply are driving up prices
Inflation, interest-rates, and now tariffs are also keeping rates high
But remanufacturing can help close the gap and lower prices!
According to USA Today, "new car sales bottomed out in 2022, the peak year of COVID-19-era shortages that hobbled assembly lines. Now, that slow year for new cars is coming back to haunt used car shoppers." The demand for used cars is also steadily increasing as the new tariffs will raise the price of new cars so customers will look to used cars for affordability (Komo News). However, with both inflation and interest rates also on the rise, the market simply doesn’t have enough supply to meet the need, especially for affordable, fuel-efficient, or entry-level vehicles.
This is where remanufacturing steps in. Whether it’s engines, transmissions, or electronic modules, remanufactured components allow vehicles to stay on the road longer — offering a cost-effective and environmentally responsible option for buyers and sellers alike. For both dealers and suppliers, remanufactured parts are a critical tool in keeping their edge during a challenging time in the industry by offering more value to customers and reducing dependency on hard-to-source new parts.
Used car prices may eventually level out, but in the meantime, remanufacturing offers a real solution — one that helps stabilize the market, supports sustainability goals, and keeps vehicles more affordable for buyers who need them most.
Sources:
https://www.usatoday.com/story/money/2025/03/06/used-car-truck-sales-leases-tariffs/81599185007/