SALT LAKE CITY — Used car prices are climbing sharply amid soaring gas prices, hitting a new average of $25,550, up roughly $1,500 in just one month, according to data from CARFAX. The surge is reshaping the automotive market with Montana and national consumers feeling the immediate pinch.
Consumer investigative reporter Matt Gephardt says the rapid price increase has surprised experts who expected higher gas costs to suppress demand. Instead, it’s fueling a rush for used vehicles as buyers seek alternatives to new car prices, which continue to rise due to tariffs set to hit the 2026 model year.
Why Used Car Prices Are Skyrocketing Right Now
Em Nguyen of CARFAX identifies three main drivers behind this explosive trend. First, recent tax refunds are boosting buyers’ down payments, injecting extra cash into the market. Second, inventory remains severely limited following the pandemic disruption when fewer new vehicles rolled off assembly lines. Third, tariffs on new cars, particularly for 2026 models, are pushing sticker prices higher, which ripples down into the used car sector.
“We were absolutely surprised when we saw that gas prices were going up, but the demand was still going up as well,” Nguyen said, highlighting a market tightening that could affect Montana drivers looking for reliable transportation now.
Shift Toward Fuel-Efficient and Electric Vehicles
Rising gas prices are also changing consumer priorities. Nguyen reports an increase in interest in fuel-efficient vehicles, including electric vehicles (EVs), as buyers look for long-term savings on fuel costs. With EVs now more in demand, buyers must carefully scrutinize warranties and the condition of expensive components like batteries, which can cost thousands to replace.
“The battery for the EV is very important. It’s what runs the whole vehicle,” Nguyen stressed. “You want to make sure when you’re purchasing it, that it’s not going to die in a couple of months or a couple of years.”
What Montana and U.S. Buyers Need to Know Right Now
In many states, including Utah and Montana, used car purchases are typically “as is,” meaning buyers get little recourse if problems appear after the sale. Experts urge consumers to pull a vehicle history report before buying, which costs between $30 to $45. These reports reveal crash history, service records, and even mileage discrepancies.
More importantly, getting an independent mechanic to inspect the car before purchase is critical. While an inspection usually costs about $150 to $200, it can uncover hidden mechanical damage that might save buyers thousands in repairs.
Nguyen also recommends verifying if any manufacturer warranty remains and whether it is transferable to the new owner, an often overlooked but essential factor in the used EV market.
How to Navigate the Rapidly Changing Market
With used car prices climbing fast, shoppers are advised to shop around with urgency—comparing models, years, and even exploring nearby markets to find better deals. As prices climb nationwide, Montana drivers should act now to avoid paying a premium later.
This surge impacts not only buyers but also Montana’s economy and commuters, as escalating costs tighten household budgets statewide. Experts say demand is poised to remain strong as fuel prices stay elevated, making used cars the immediate go-to choice across the U.S.
Keep an eye on ongoing tariffs and supply chain developments, as these will further shape the automotive landscape in the coming months, especially for newer car models set for release in 2026.
MONTANA INSIDER WILL CONTINUE TO FOLLOW THIS DEVELOPING STORY.
