Used Cars Still Dominate the Market; Prices Near $26,000

With nearly 37 million used vehicles sold annually — more than double new-car sales — Mercury Insurance shares smart buying tips as shoppers hunt for value

LOS ANGELES, March 19, 2026 /PRNewswire/ -- Used-car shoppers are entering a market that has changed dramatically since the pandemic, with higher prices, tighter inventories and stronger demand pushing many drivers toward the pre-owned market. Mercury Insurance (NYSE/NYSE Texas: MCY) is helping consumers navigate the process with guidance on vehicle safety, history reports and insurance considerations before making a purchase.

The typical used vehicle now sells for about $26,000 nationwide, and affordable models under $15,000 can be difficult to find due to limited supply, according to pricing data from Kelley Blue Book. That pressure is partly driven by the rising cost of new vehicles. The average new-car transaction price is now around $47,000, pushing many buyers toward used options.

Despite the challenges, demand remains strong. Americans purchased about 37.4 million used vehicles in 2024, more than twice the roughly 16 million new vehicles sold annually in the United States, according to studies from Cox Automotive and Wards Intelligence.

"The used-car market has become the entry point for millions of drivers," said Justin Yoshizawa, Director of Product Management at Mercury Insurance. "But a lower sticker price doesn't always mean lower overall costs. Buyers should look closely at safety features, vehicle history and insurance considerations so they understand the full picture before making a purchase."

Industry data shows why the used market has remained tight. During the pandemic, automakers built fewer vehicles due to supply-chain disruptions and semiconductor shortages. Those missing production years mean fewer vehicles are now entering the used-car pipeline, keeping inventory constrained and prices elevated compared with pre-2020 levels.

Mercury Insurance Tips for Buying a Used Car

1. Check safety technology, not just mileage Advanced safety features such as automatic emergency braking, lane-departure warnings and blind-spot monitoring can reduce crash risk and insurance claims. These systems became more common in vehicles produced after the mid-2010s.

2. Review the vehicle history carefully
A vehicle history report can reveal past accidents, flood damage or title issues. Even a low-mileage vehicle can carry hidden risks if it has significant prior damage.

3. Compare insurance costs before buying
Insurance premiums can vary widely depending on the vehicle model, repair costs and safety ratings. Getting a quote before purchasing helps avoid surprises.

4. Inspect the car — and consider a mechanic's review
A professional inspection can uncover issues that may not appear during a quick test drive.

5. Watch the total cost of ownership
Fuel economy, maintenance costs and insurance premiums all affect what a vehicle truly costs over time.

Tax Refund Season Can Drive Used-Car Demand

Tax refunds often provide the down payment many households need to purchase a vehicle. With new cars becoming increasingly expensive and inventories of budget vehicles still limited, experts expect used vehicles to remain a primary option for cost-conscious drivers this year.

"Buying used can still be a smart financial decision," Yoshizawa said. "The key is doing your homework — understanding the car's history, safety features and insurance implications so you know exactly what you're getting."

For more information about new and used car buying, check out the Mercury Blog.

About Mercury Insurance

Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier predominantly offering personal auto, homeowners, renters and commercial insurance through a network of independent agents in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury writes other lines of insurance in various states, including commercial, business owners and business auto, landlord, home-sharing, ride-hailing and mechanical protection insurance.

Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultra-competitive rates with excellent customer service, through more than 4,200 employees and a network of more than 6,340 independent agents in 11 states. Mercury has earned an "A" rating from A.M. Best, as well as "Best Auto Insurance Company" designations from Forbes and Insure.com. For more information visit www.MercuryInsurance.com or follow the company on X, Instagram or Facebook.

SOURCE Mercury Insurance Services, LLC