The U.S. used-car market continues to show signs of strength as vehicle prices increased across every major segment in May 2026, according to the latest CARFAX Used Car Index.

The report found that average prices rose by approximately 3.1% year-over-year, with hybrids and electric vehicles leading the market. Prices for used hybrids and EVs increased by 4.6%, representing one of the strongest gains among all vehicle categories.

Industry analysts point to several factors behind the trend. Inventory levels remain below historical averages, while consumer demand for reliable transportation continues to stay strong. At the same time, many buyers are still facing high new-vehicle prices and elevated financing costs, making used vehicles a more attractive option.

Hybrid and electric models have become particularly desirable as fuel efficiency and lower operating costs remain important considerations for consumers. Popular vehicles from Tesla, Toyota, Honda, and other manufacturers continue to attract strong interest on the secondary market.

The findings align with recent data from other industry sources, including the Manheim Used Vehicle Value Index, which also reported rising wholesale vehicle values in recent months. Together, these indicators suggest that the used-car market may be entering a new phase of stabilization after the significant fluctuations seen during the past several years.

For buyers, the rising market creates both opportunities and risks. As vehicle values increase, the importance of conducting a thorough vehicle history check becomes even greater. Hidden accident damage, flood exposure, title issues, odometer discrepancies, and incomplete maintenance records can significantly affect a vehicle's true value and long-term ownership costs.

Industry experts recommend combining vehicle history reports with independent inspections before purchasing any used vehicle, particularly as competition for quality inventory continues to increase.

While the market remains dynamic, one thing is becoming clear: used vehicles are holding their value better than many analysts expected, and demand for well-documented, properly maintained vehicles remains strong throughout the United States.

Source: CollisionWeek citing data from the CARFAX Used Car Index.

Original article:
https://collisionweek.com/2026/05/27/carfax-used-car-index-rises-every-segment-may-led-hybrids-evs/