The auto market update August 2025 reveals that used car prices are falling faster than usual as the new month begins. Depreciation is outpacing seasonal expectations across both wholesale and retail sectors. Whether you’re buying, selling, or appraising, understanding where prices are heading helps you stay ahead of the market.
In this week’s update, we’ll cover current depreciation rates, vehicle segment performance, inventory movement, and auction trends. By the end, you’ll know which models are declining fastest and what the August 2025 auto market outlook means for your next move.
Market Summary – Auto Market Update August 2025
Depreciation picked up again this week. The national average price drop hit 0.58%, compared to 0.50% the week prior. This rate is nearly twice the typical seasonal decline. Trucks and SUVs led the slide, but all segments were affected.
Key points:
- Car segments: down 0.57%
- Truck/SUV segments: down 0.59%
- Wholesale market average: down 0.58%
- Auction conversion rate: 59%, still strong
Car Segment Breakdown
| Vehicle Segment | Weekly Depreciation (%) |
|---|---|
| Sub-Compact Cars | -0.95 |
| Premium Sporty Cars | 0.00 |
| 0–2 Year Cars | -0.45 |
| 8–16 Year Cars | -0.42 |
| Full-Size Pickups | -0.30 |
| Small Pickups | -0.12 |
| Compact Crossovers | -0.55 |
Sub-compact cars posted the steepest losses again at 0.95%, continuing a three-month downward trend. On the flip side, premium sporty cars remained mostly flat, with some late-model listings appreciating slightly.
Depreciation by age:
- 0–2-year-old cars: -0.45%
- 8–16-year-old cars: -0.42%
Truck and SUV Trends
- Pickup depreciation slowed, while crossovers took a bigger hit.
- Full-size pickups: -0.30% (improved from -0.41%)
- Small pickups: -0.12%
- Compact crossovers: -0.55%, their sharpest drop since January
- Luxury SUVs: minor losses, better than most other segments
Auction and Lot Activity
The 59% auction conversion rate reflects steady demand despite depreciation. Franchised dealers remain low on crossovers and EVs, while independents are absorbing more aging stock.
Retail Pricing and Inventory
Used retail prices declined by 0.3%. While less severe than wholesale trends, the retail market is gradually aligning. Inventory rose slightly, with days-to-turn still hovering around 41 days.
Franchised dealers are adding mid-size and full-size models. Independent lots are focused on older, affordable vehicles below $20,000.
Expert Insight: What Comes Next?
The auto market update August 2025 suggests we may see some segment-level stabilization later this month. Pickups and high-end SUVs are showing signs of flattening out, but economy models continue to fall. Interest rates, incentives, and new model arrivals will shape the next two weeks.
Bottom Line: August 2025 Auto Market Outlook
Vehicle values are declining quickly. If you’re a buyer, prices are becoming more favorable. If you’re a seller, especially with a compact or entry-level crossover, time is not on your side.
This auto market update August 2025 shows a market under pressure, with shifting inventory and declining values. Staying informed helps you make the right move—whether you’re listing a car or closing a deal.
