If you've been thinking about selling your car, the market just moved in your favor.
Used car values started climbing 2-3 weeks earlier than normal this spring. The average used car is selling for around $26,000 nationwide, up about 3% from last year. And the affordable stuff under $15,000? Almost impossible to find. Dealers are competing with each other at auction just to get inventory on their lots.
I've been buying cars for over 30 years. I've seen a lot of springs. This one feels different.
Quick answer:
- Prices are up: Used car values climbing 3-4% year over year, started 2-3 weeks earlier than normal this spring
- Why: Tax refund season, 25% tariff on new car imports pushing buyers to used, and tight 49-day supply
- Best time to sell: Now through summer. Spring is historically when used car values peak.
- Your car is likely worth more than you think right now, especially Toyotas, Hondas, and Lexus models
Why Prices Are Moving Up
Three things are happening at once.
Tax refund season hit hard. Refunds are up about 6% this year, and a big chunk of that money goes straight into car purchases. That means more buyers in the market right now, which pushes prices up.
New car tariffs are pushing buyers to used. The 25% tariff on auto imports has made new cars even more expensive than they already were. The average new car transaction price is sitting just under $50,000. A lot of people who would have bought new are now shopping used instead, and that tightens the supply even more.
There just aren't enough cars. The used car market has about a 49-day supply of inventory right now. For comparison, the new car side has 98 days of supply. The pandemic production gaps from 2020-2022 are still working through the system. Fewer cars were built, so fewer cars are available as 3-5 year old used vehicles today.
CarMax is feeling it too. They've been stocking up on vehicles in the 6-10 year old range and cars under $20,000, but even they reported an 8% drop in retail unit sales last quarter because inventory is that tight.
What This Means If You're in the San Fernando Valley or Thousand Oaks Area
Here's the part that matters to you.
If you're sitting on a car in Woodland Hills, Calabasas, Encino, Thousand Oaks, or anywhere in the Valley, your car is probably worth more right now than it will be in July. Spring is historically when used car values peak, and this year the peak started early.
The West region (California, Washington, Oregon, Nevada) specifically saw luxury car prices jump over $1,000 in recent months, while SUV prices dipped slightly. If you're driving a late-model Toyota, Honda, or Lexus, you're in the sweet spot. Those brands are moving faster than anything else on the market right now. The Lexus GX has a 19-day supply, meaning it sells almost as fast as dealers can get them.
On the other hand, if you're holding an EV, values have been sliding as federal tax credits expired and more lease returns hit the market. That's worth knowing before you wait another few months.
The California CARS Act Is Coming Too
One more thing worth mentioning. Starting October 1, 2026, California's new CARS Act (SB-766) kicks in. It gives used car buyers a 3-day return right on any vehicle under $50,000. That's going to change how dealers price and sell used cars, and it could create some uncertainty in the market later this year.
If you're planning to sell, doing it before October removes that variable entirely. For a full walkthrough of the California selling process, see our guide on how to sell a car in California.
What I'd Tell a Friend
If someone in Tarzana or Westlake Village asked me right now, “should I sell my car this spring or wait?” I'd say sell. Not because I'm trying to buy it (though I'd love the chance). Because the numbers say so. Prices are up, inventory is tight, demand is strong, and there's a regulatory change coming in the fall that could shift the dynamics.
You don't have to drive to CarMax and spend half your Saturday. (Not sure whether CarMax or private sale is the better move? I break down the real math on CarMax vs. private sale.) I come to you. Your driveway, your office, wherever works. I run the numbers, show you a firm offer on the spot, and if you want to move forward, I write you a check before I leave. If you don't, no pressure. I'll tell you what I think your best move is either way.
Sources
- CarEdge: Car Market Update for Spring 2026 :Spring market analysis, 49-day used supply, seasonal pricing
- Kelley Blue Book: Used Car Wholesale Prices Rise :Manheim index up 2.4%, early spring bounce
- CarGurus Pricing Index :Used car prices up 3.2% month-over-month
- NerdWallet: Are Car Prices Going Up or Down? :Average used car price, inventory constraints
- Carfax Used Car Index :West region pricing, luxury car increases, EV declines
- California Dealer Academy: CARS Act (SB-766) :3-day return right, October 2026 effective date
Frequently Asked Questions
Why are used car prices rising in 2026?
Limited new car inventory from pandemic-era production shortages is still affecting the used market. Demand is outpacing supply, especially for popular models like Toyota RAV4, Honda CR-V, and pickup trucks.
Is now a good time to sell my car?
Spring and summer 2026 are strong selling windows. Used car values are up 4-8% year over year, with SUVs and trucks seeing the biggest gains. Prices typically peak in late spring before cooling in fall.
How much more is my car worth compared to last year?
On average, 4-8% more for clean, well-maintained vehicles. The increase is higher for SUVs and trucks (6-10%) and lower for sedans (2-4%). Check your specific vehicle using KBB or get a firm offer from a dealer.
Will used car prices keep going up?
Most industry analysts expect prices to plateau in late 2026 as new car production normalizes. If you are thinking about selling, the current window is favorable.