The car market has seen some wild changes over the past few years. From COVID-era supply chain disruptions to rising fuel prices and the push toward electric vehicles, it’s no wonder people are asking, “Is buying a used car still a good idea in 2025?”
Short answer? Yes—used cars can still be a smart investment. But like anything, it depends on what you’re buying, why you’re buying it, and how well you do your homework. Let’s break it down.
Prices Have Stabilised (Kind Of)
Back in 2021–2022, the price of used cars skyrocketed. People were paying new-car prices for five-year-old hatchbacks because there simply weren’t enough vehicles to go around. Fast forward to 2025, and we’re finally seeing a bit more balance in the market.
Prices aren’t as inflated as they were, but don’t expect any massive bargains either. Good-condition used vehicles still hold their value surprisingly well—especially models known for reliability, like the Toyota Corolla or Mazda3.
Tip: If you’re buying used in 2025, you may still be competing with people who want to avoid high interest rates or long new-car wait times. Be quick, but not hasty.
Depreciation Still Works in Your Favour
One of the biggest perks of buying used? You dodge the biggest drop in value. New cars can lose up to 30% of their value in the first year alone. That’s thousands of dollars gone just by driving it off the lot.
In contrast, a well-maintained three- or four-year-old car has already done most of its depreciating. You get more car for your money—and if you keep it in good condition, you can often resell it in a few years without taking a huge loss.
More Quality Choices Than Ever
With more people trading in petrol and diesel cars for electric vehicles, the second-hand market is getting an upgrade. In 2025, you’ll find used cars with low kilometres, great service histories, and all the bells and whistles—like Apple CarPlay, reversing cameras, and lane assist—at much lower prices than new models.
There are even more hybrid options hitting the market. If you’re not ready to go full EV, you can get the best of both worlds with something like a used Toyota Camry Hybrid.
The Catch? Watch Out for Hidden Issues
The usual used car risks still apply. Rust, hidden engine issues, clocked odometers—it’s all still out there. In fact, some used cars being sold today might have been neglected during the last few years due to rising maintenance costs or parts shortages.
That’s why it’s more important than ever to get a full inspection before buying. We see a lot of cars come through our cash-for-cars service with problems that could have been spotted early—leaking head gaskets, bald tyres, dodgy transmissions. And unfortunately, some of these were only a few years old.
Electric Vehicles: Worth It Yet?
Used EVs are becoming more common in 2025, and they can be a great deal—but there’s a catch: the battery.
Batteries lose capacity over time, and replacing them can be expensive (think $5,000 or more depending on the model). So if you’re buying a used electric car, make sure the battery has been tested or still under warranty.
That said, for city driving or short commutes, a used EV like a Nissan Leaf or Hyundai Ioniq can still be a solid investment—especially with lower running costs and fewer moving parts to maintain.
Insurance & Running Costs
Used cars are generally cheaper to insure than new ones, and that’s a big win for your wallet. Parts are usually easier to find, too—especially if you’re buying a popular make and model.
But don’t just assume older means cheaper. Some European or premium used cars may seem affordable up front, but cost a fortune to maintain. Always do a bit of research on service costs and common issues.
Real-World Example
One of our regular customers recently picked up a 2018 Honda Civic for just under $18,000. It had 90,000 km on the clock, full service records, and was in excellent condition. He’s used it for work and weekend trips for over a year now with no major problems.
On the other hand, another customer grabbed a cheap luxury SUV—looked great, drove well, but had hidden electrical issues that cost thousands to fix. By the time they were done, they’d spent more than they would have on a reliable, mid-range car.
So, Are Used Cars Still a Good Investment in 2025?
Absolutely—if you buy smart. In many cases, a used car is still the most budget-friendly way to get reliable transport. You skip the worst of the depreciation, have more choices than ever, and can often pick up a well-equipped vehicle for a fraction of the price of new.
Just make sure you:
- Know your budget (including running costs),
- Check the vehicle history,
- Get it inspected,
- And choose something with a strong reliability track record.
Worth the Wheels
Used cars in 2025 still make a lot of sense. They’re not just cheaper to buy—they can also be more cost-effective in the long run. Just steer clear of the lemons, do your homework, and don’t fall for shiny paint over solid performance.
And if your old ride isn’t worth holding onto any longer, we’re here to help you turn it into cash—fast. Whether it’s damaged, worn out, or just time for an upgrade, we’ll take it off your hands with no fuss.
If you are in Mill Park, 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