Used Vehicle Price Trends & Fleet Implications: Mid-2025 Market Update
WORDS BY REDBOOK Key Market Trends
• Resilient Recovery The RedBook Used Vehicle Price Index has climbed to 123 percent of pre-2020 levels, underscoring sustained demand and robust sales volumes across most segments.
• SUVs Leading the Way Non-premium SUVs continue to demonstrate market strength, holding value steadily and outpacing other vehicle types, making them a cornerstone of fleet resilience.
• Softening Premium Market Premium passenger and light commercial vehicles have softened significantly, with some upper-large and luxury models experiencing declines of 6 – 10 percent year-on-year since June 2024. This shift reflects buyers favouring affordability and utility amid ongoing cost-ofliving pressures.
Emerging Forces & Strategic Implications
1. Elevated Operational Cost Pressures Persistently high interest rates and broader economic constraints are eroding demand for top-tier models, presenting both pricing risks and renewal opportunities for fleets.
2. Market Disruption by New Entrants Fast-growing Chinese manufacturers are intensifying competition, especially in SUVs and electrified powertrains, by offering valuerich alternatives. This dynamic is accelerating depreciation pressures on traditional premium brands with slower product product lifecycles.
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