Used Cars Still Dominate the Market; Prices Near $26,000

Mercury Insurance (NYSE: MCY) provides guidance as the used-car market remains tight, with the typical used vehicle price near $26,000 and affordable models under $15,000 scarce.

Rhea-AI Summary

Mercury Insurance (NYSE: MCY) provides guidance as the used-car market remains tight, with the typical used vehicle price near $26,000 and affordable models under $15,000 scarce.

Americans bought about 37.4 million used vehicles in 2024, more than double new-car sales; buyers should check safety features, vehicle history and insurance costs before purchase.

Positive

• Used vehicles sold: 37.4 million in 2024
• Typical used-vehicle price near $26,000
• Higher new-car pricing ($47,000 average) pushing demand to used market

Negative

• Affordable used models under $15,000 are limited
• Pandemic-era production gaps keep used-car inventory constrained

Argus Mar 19 session

+0.13% close to close Open Argus

Details

News Market Reaction – MCY

On Mar 19, the day this news came out, MCY closed 0.13% above the previous close.

Data tracked by StockTitan Argus for the Mar 19 session.

Key Figures

Annual used vehicle sales: 37 million Typical used vehicle price: $26,000 Affordable used threshold: $15,000 +3 more

Annual used vehicle sales

37 million

Used vehicles sold annually in the U.S.

Typical used vehicle price

$26,000

Current typical nationwide used-vehicle selling price

Affordable used threshold

$15,000

Price point where used vehicles are described as hard to find

Average new-car price

$47,000

Average new-car transaction price in the U.S.

Used vehicles purchased 2024

37.4 million

Used vehicles purchased in 2024 in the U.S.

Annual new vehicle sales

16 million

Approximate new vehicles sold annually in the U.S.

Historical Context

5 past events · Latest: Mar 17

5 events

1. Mar 17

   Consumer driving tips

   24h Move

   -0.9%

   Guidance on fuel economy impacts from aggressive driving and eco-driving tips.

2. Mar 12

   Regulatory road laws

   24h Move

   -1.1%

   Overview of new California 2026 driving laws and consumer protections.

3. Mar 10

   EV travel guidance

   24h Move

   -0.7%

   Highlights EV adoption, charging infrastructure and travel tips for spring break.

4. Mar 05

   Severe weather risks

   24h Move

   -2.0%

   Advises on storm frequency, property risks and pre-storm preparedness steps.

5. Mar 03

   Tax document reminder

   24h Move

   -0.3%

   Encourages taxpayers to organize insurance documents ahead of filing deadlines.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

automatic emergency braking, lane-departure warnings, blind-spot monitoring, vehicle history report, +1 more

5 terms

automatic emergency braking technical

"Advanced safety features such as automatic emergency braking, lane-departure warnings..."

Automatic emergency braking is a vehicle safety system that uses sensors and software to detect an imminent collision and apply the brakes automatically to slow or stop the car, reducing damage or avoiding a crash. Investors care because the presence, performance and regulation of this feature influence manufacturing costs, warranty and liability exposure, insurance rates, consumer appeal and a maker’s ability to meet safety rules—similar to a built-in safety net that can change a product’s market value.

lane-departure warnings technical

"Advanced safety features such as automatic emergency braking, lane-departure warnings..."

Lane-departure warnings are in-car safety systems that alert a driver when their vehicle begins to drift out of its travel lane, using cameras or sensors to detect lane markings and issuing a sound, vibration, or visual cue—think of a gentle nudge or beep that says “stay in your lane.” Investors care because these systems affect vehicle safety ratings, regulatory compliance, consumer demand, and the market for automotive sensors and software, all of which can influence sales, costs, and liability exposure.

blind-spot monitoring technical

"Advanced safety features such as automatic emergency braking, lane-departure warnings and blind-spot monitoring..."

A car safety system that uses sensors and cameras to detect vehicles or objects beside and slightly behind a vehicle where the driver cannot easily see, then warns the driver with lights, sounds or steering feedback. Investors care because it boosts a vehicle’s safety ratings and consumer appeal, can affect production costs and warranty exposure, and may influence sales, regulatory compliance and resale values much like a sought‑after optional feature.

vehicle history report technical

"A vehicle history report can reveal past accidents, flood damage or title issues."

A vehicle history report is a compiled record of a used car’s past — including title status, reported accidents, service and maintenance entries, odometer readings, and any liens or salvage branding — drawn from DMV records, repair shops, insurers and auctions. Investors treat it like a medical or credit report for a car: it helps reveal hidden problems, estimate future repair or resale value, and reduce the risk of overpaying or holding impaired vehicle assets.

total cost of ownership financial

"Fuel economy, maintenance costs and insurance premiums all affect what a vehicle truly costs over time."

The total cost of ownership is the full lifetime expense of acquiring and keeping an asset or product, not just its sticker price — it includes purchase, installation, operating, maintenance, financing and disposal costs. For investors, it reveals the real economic burden or savings of a purchase so they can judge profitability, cash flow and competitive strength; like comparing cars by adding fuel, insurance and repairs, not just the sale price.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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With nearly 37 million used vehicles sold annually — more than double new-car sales — Mercury Insurance shares smart buying tips as shoppers hunt for value

LOS ANGELES, March 19, 2026 /PRNewswire/ -- Used-car shoppers are entering a market that has changed dramatically since the pandemic, with higher prices, tighter inventories and stronger demand pushing many drivers toward the pre-owned market. Mercury Insurance (NYSE/NYSE Texas: MCY) is helping consumers navigate the process with guidance on vehicle safety, history reports and insurance considerations before making a purchase.

The typical used vehicle now sells for about $26,000 nationwide, and affordable models under $15,000 can be difficult to find due to limited supply, according to pricing data from Kelley Blue Book. That pressure is partly driven by the rising cost of new vehicles. The average new-car transaction price is now around $47,000, pushing many buyers toward used options.

Despite the challenges, demand remains strong. Americans purchased about 37.4 million used vehicles in 2024, more than twice the roughly 16 million new vehicles sold annually in the United States, according to studies from Cox Automotive and Wards Intelligence.

"The used-car market has become the entry point for millions of drivers," said Justin Yoshizawa, Director of Product Management at Mercury Insurance. "But a lower sticker price doesn't always mean lower overall costs. Buyers should look closely at safety features, vehicle history and insurance considerations so they understand the full picture before making a purchase."

Industry data shows why the used market has remained tight. During the pandemic, automakers built fewer vehicles due to supply-chain disruptions and semiconductor shortages. Those missing production years mean fewer vehicles are now entering the used-car pipeline, keeping inventory constrained and prices elevated compared with pre-2020 levels.

Mercury Insurance Tips for Buying a Used Car

1. Check safety technology, not just mileage Advanced safety features such as automatic emergency braking, lane-departure warnings and blind-spot monitoring can reduce crash risk and insurance claims. These systems became more common in vehicles produced after the mid-2010s.

2. Review the vehicle history carefully
A vehicle history report can reveal past accidents, flood damage or title issues. Even a low-mileage vehicle can carry hidden risks if it has significant prior damage.

3. Compare insurance costs before buying
Insurance premiums can vary widely depending on the vehicle model, repair costs and safety ratings. Getting a quote before purchasing helps avoid surprises.

4. Inspect the car — and consider a mechanic's review
A professional inspection can uncover issues that may not appear during a quick test drive.

5. Watch the total cost of ownership
Fuel economy, maintenance costs and insurance premiums all affect what a vehicle truly costs over time.

Tax Refund Season Can Drive Used-Car Demand

Tax refunds often provide the down payment many households need to purchase a vehicle. With new cars becoming increasingly expensive and inventories of budget vehicles still limited, experts expect used vehicles to remain a primary option for cost-conscious drivers this year.

"Buying used can still be a smart financial decision," Yoshizawa said. "The key is doing your homework — understanding the car's history, safety features and insurance implications so you know exactly what you're getting."

For more information about new and used car buying, check out the Mercury Blog.

About Mercury Insurance

Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier predominantly offering personal auto, homeowners, renters and commercial insurance through a network of independent agents in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury writes other lines of insurance in various states, including commercial, business owners and business auto, landlord, home-sharing, ride-hailing and mechanical protection insurance.

Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultra-competitive rates with excellent customer service, through more than 4,200 employees and a network of more than 6,340 independent agents in 11 states. Mercury has earned an "A" rating from A.M. Best, as well as "Best Auto Insurance Company" designations from Forbes and Insure.com. For more information visit www.MercuryInsurance.com or follow the company on X, Instagram or Facebook.

View original content to download multimedia:https://www.prnewswire.com/news-releases/used-cars-still-dominate-the-market-prices-near-26-000--302718540.html

SOURCE Mercury Insurance Services, LLC

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What does Mercury Insurance (MCY) say is the current typical used-car price in March 2026?

The typical used vehicle is now priced at about $26,000, according to the company. This reflects tighter inventories and stronger demand, with budget models under $15,000 increasingly hard to find nationwide.

How many used vehicles were sold in 2024 and why does Mercury Insurance mention this for MCY investors?

Americans purchased about 37.4 million used vehicles in 2024, according to the company. That volume, more than double new-car sales, supports sustained insurance demand for pre-owned vehicles and related policy opportunities.

How does the average new-car price influence the used-car market, per Mercury Insurance (MCY)?

The average new-car transaction price is around $47,000, according to the company. Elevated new-car costs push budget-conscious buyers toward used vehicles, increasing used-vehicle demand and affecting insurance exposure mix.

What buying tips does Mercury Insurance offer used-car shoppers that could affect MCY insurance costs?

Mercury recommends checking safety tech, vehicle history, and insurance quotes before purchase. According to the company, these steps reduce crash risk surprises and help buyers estimate insurance premiums tied to specific models.

Will tax refund season affect used-car demand, and what does Mercury Insurance (MCY) expect in 2026?

Yes — tax refunds often provide down payments that boost used-car purchases, the company says. With new cars costly and budget used inventory limited, Mercury expects continued demand from cost-conscious buyers during refund season.