The Indian automobile industry has entered a transformative phase in 2025, with electric vehicle adoption rising and stricter fuel policies reshaping demand. Amid these shifts, the market trends 2025 reveal a surprising reality—used car prices are climbing sharply. Buyers looking for affordable second-hand vehicles are facing rising costs, while sellers are seeing improved resale value.
According to recent reports, the average price of used cars in India has increased by 12–15% in the first nine months of 2025, compared to last year. This marks the highest year-on-year surge in over a decade, making it crucial for both buyers and sellers to understand what’s driving this change.
Why Are Used Car Prices Rising in 2025?
Several key factors are fueling the rise in used car prices:
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Shift Toward EVs – With the government pushing EV subsidies, many buyers are delaying new petrol/diesel car purchases, making the used car market more competitive.
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Rising Petrol and Diesel Prices – Fuel costs remain above ₹105 per litre in September 2025, encouraging buyers to seek fuel-efficient used cars.
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Supply Constraints – The production of new cars slowed in early 2025 due to semiconductor and component shortages, pushing buyers towards the second-hand market.
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Growing Demand in Tier-2 and Tier-3 Cities – Middle-class families in smaller cities are increasingly opting for used cars as their first vehicle.
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Hybrid and Compact SUVs in Demand – Used models of popular SUVs and hybrids are commanding higher resale values.
This unique mix of supply shortages and rising demand has made the used car segment unexpectedly hot.
Most Affected Models in the Used Car Market
Not all cars are experiencing the same resale surge. Market trends 2025 show that specific categories are more in demand:
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Compact SUVs like Hyundai Creta, Kia Seltos, and Tata Nexon are topping resale charts.
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Fuel-efficient hatchbacks such as Maruti Swift, Baleno, and Hyundai i20 remain best-sellers in the second-hand market.
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Hybrid vehicles like Toyota Hyryder and Innova Hycross are selling at a premium due to limited availability.
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EVs like Tata Nexon EV and MG ZS EV are holding strong value, as more buyers test electric cars at lower prices.
Luxury cars, on the other hand, show mixed trends—while demand exists, high maintenance and fuel costs limit resale value.
Price Comparison: New vs Used Cars in 2025
Here’s a snapshot of the current used car price rise compared to new car prices in September 2025:
| Model | New Car Price (₹) | Average Used Car Price (₹) | Resale Value Retained |
|---|---|---|---|
| Hyundai Creta | 13–19 lakh | 9–14 lakh | 72% |
| Maruti Baleno | 8–12 lakh | 6–9 lakh | 75% |
| Tata Nexon EV | 15–20 lakh | 12–16 lakh | 78% |
| Toyota Innova Hycross | 22–32 lakh | 18–27 lakh | 82% |
| Maruti Swift | 7–9 lakh | 5–7 lakh | 70% |
The data shows that many popular models are retaining 70–80% of their original value even after 3–4 years of use, which is much higher than pre-2020 trends.
Impact on Buyers
For buyers, the rising market trends 2025 in the used car segment present both opportunities and challenges:
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Higher upfront cost – Budget buyers are finding it difficult to purchase cars under ₹5 lakh, as options are shrinking.
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Better financing options – Banks and NBFCs are offering used car loans with lower interest rates, making ownership easier.
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Wider dealer networks – Platforms like Spinny, Cars24, and OLX Autos are providing certified used cars with warranties.
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Shift to hybrids and EVs – Buyers with long-term vision are exploring used hybrids and EVs to save on fuel costs.
In short, affordability is becoming an issue for entry-level buyers, but mid-segment customers still benefit from long-term value.
Impact on Sellers
For sellers, the situation is favorable in 2025. Rising demand ensures:
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Higher resale value even for 3–5 year-old vehicles.
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Faster sales turnaround, especially for SUVs and fuel-efficient hatchbacks.
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Better trade-in offers from new car dealers who want to attract EV buyers.
This trend gives existing car owners a strong incentive to sell now before prices stabilize.
What to Expect for the Rest of 2025
Industry experts predict that the used car price rise will continue through the festive season and possibly stabilize in early 2026. Some forecasts indicate a further 5–7% increase in Q4 2025, especially in the SUV and hybrid segments.
Long term, as EV adoption grows, traditional petrol and diesel cars may lose value. But in the short run, these vehicles remain highly sought after, especially by first-time buyers.
Tips for Buyers in 2025
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Act quickly – Prices are rising month by month; waiting could cost more.
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Check certified dealers – Always prefer cars with verified history and warranties.
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Look at hybrids and EVs – These will hold better resale value in coming years.
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Compare financing – Explore multiple banks for the best used car loan deals.
Tips for Sellers in 2025
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Sell SUVs and hybrids now – These are fetching premium prices in September 2025.
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Use online platforms – Listing on multiple platforms increases exposure.
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Time the festive season – Demand peaks in October–November, giving better margins.
FAQs
Why are used car prices rising in 2025?
They are rising due to supply shortages, EV transition, high fuel prices, and strong demand for SUVs and hybrids.
Which used cars are in highest demand?
Hyundai Creta, Tata Nexon, Maruti Swift, Toyota Hyryder, and Nexon EV are among the top choices in 2025.
Is it better to buy a new or used car in 2025?
If budget allows, new EVs and hybrids offer long-term savings, but used cars remain a good option for first-time buyers.
Will used car prices drop in 2026?
Prices may stabilize once supply improves and more affordable EVs enter the market, but for now, demand keeps them high.
How much resale value do popular models retain in 2025?
On average, 70–80% of the original value is retained after 3–4 years, which is much higher than before 2020.
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