If you’re considering selling your car—whether it’s a reliable used vehicle or a non-running clunker—understanding the current market landscape is crucial. In 2025, both the used car and scrap vehicle markets are experiencing notable shifts. Let’s delve into the key trends shaping these industries and what they mean for you.
Used Car Market: Navigating High Demand and Limited Supply
1. Rising Prices Amidst Low Inventory
The average price of a used car in April 2025 stands at $25,128, reflecting a slight increase due to heightened demand during the spring buying season. This uptick is influenced by ongoing supply constraints stemming from pandemic-era production slowdowns, which resulted in approximately 8 million fewer new cars being manufactured in 2021 and 2022. CarEdgeKbb.com
2. Impact of Tariffs on Vehicle Prices
The implementation of 25% tariffs on imported vehicles and parts by the Trump administration has led to a surge in new car prices, with increases ranging from $4,000 to $12,000. Consequently, many consumers are turning to the used car market, intensifying demand and potentially driving up prices further.Time+2Investopedia+2CT Insider+2
3. Brand-Specific Trends
Notably, used Tesla prices have experienced significant declines, with the Model S and Model Y dropping 17.2% and 13.1% respectively. This trend is attributed to a combination of factors, including increased competition in the EV market and public relations challenges faced by the brand.Business Insider
Scrap Vehicle Market: Growth Driven by Sustainability and Recycling
1. Expanding Market Size
The global vehicle scrapping market is projected to grow from $80.9 billion in 2024 to $93.61 billion in 2025, marking a compound annual growth rate (CAGR) of 15.7%. This expansion is fueled by urbanization, increased adoption of autonomous vehicles, and a growing emphasis on sustainable practices.Global Market Insights+2Global Market Insights+2WhaTech+2
2. Demand for Recyclable Materials
Steel remains the most prevalent material extracted from scrapped vehicles, given its recyclability and demand in various manufacturing processes. The focus on recycling valuable materials like steel, aluminum, and copper aligns with global efforts to promote a circular economy.Fortune Business Insights
3. Environmental Considerations
Rising environmental awareness is a significant driver of growth in the vehicle scrapping market. Consumers are increasingly seeking environmentally sustainable products, and vehicle scrapping supports these goals by recycling materials and managing hazardous substances effectively. Fortune Business Insights+4Global Market Insights+4WhaTech+4
What This Means for You
- For Used Car Sellers: With high demand and limited supply, now is an opportune time to sell your used vehicle. However, be mindful of brand-specific trends that may affect resale value.
- For Scrap Vehicle Owners: The growing emphasis on sustainability and recycling has increased the value of scrapped vehicles. Even non-running cars can fetch a reasonable price due to the demand for recyclable materials.
- For Buyers: If you’re in the market for a used car, be prepared for higher prices and act swiftly to secure favorable deals, especially in light of tariff-induced price hikes.The Verge
Ready to Sell Your Car?
Whether you’re looking to sell a used vehicle or dispose of a non-running car, understanding the current market trends can help you make informed decisions. If you’re ready to take the next step, consider reaching out to a reputable car removal service that offers:
- Free Vehicle Removal
- Instant Cash Payments
- Eco-Friendly Recycling Practices
Feel free to contact us for a no-obligation quote and experience a hassle-free car selling process.
If you are in Kingsbury, and looking for a cash for cars service, this is the best way to visit us.
Bundoora Cash For Cars
13 Nickson St, Bundoora VIC 3083