Useful trends in the used car market

Despite all the macro trends that have impacted consumer behavior — electrification, affordability, inventory and loyalty — the balance between used and new vehicle registrations has remained remarkably consistent.

Over the past 26 quarters, from the first quarter of 2019 to the second quarter of 2025, used vehicles have consistently accounted for an average of 76% of total registrations, compared to 24% for new.

While a few quarters saw slight fluctuations, most quarters had this split, underscoring the underestimated importance of the used car market. To put these percentages into perspective, the quarterly average for new registrations in this time span was 3.05 million, compared with a staggering 9.5 million used registrations.

Looking at the used car market versus new across five regional sections reveals interesting insights.  From the first quarter of 2023 through the third quarter of 2025, the Northeast leads with the highest new-to-used vehicle ratio, accounting for 16.8% of total US registration volume but 20.5% of total new vehicle registrations.

The numbers result in a 122 index, meaning return-to-market shoppers in the Northeast are 22% more likely to buy new than used. The West also shows a stronger preference for new vehicles, with 18.6% of the total market but 20% of new registrations, yielding an index of 108.  New index calculation equals the share of new registrations/share of total registrations x 100.

The Midwest and Southeast dominate vehicle registrations but lean toward used vehicles. The Midwest holds the highest share of used registrations, slightly above average, while the Southeast—though the largest overall market—also tilts toward used. The Southwest remains balanced, with new and used shares nearly identical to national averages. Used index calculation: share of used registrations/share of total registrations x 100.

Not surprisingly, the used-to-new brand loyalty—when a customer owns a used brand, then buys new from the same brand when returning to market—average of 30% is noticeably lower than the industry average of 50.5% for new-to-new purchases.

This disparity underscores the challenges brands and dealerships face in retaining customers transitioning from the used car market. In fact, just eight brands outperform the industry average for used-to-new loyalty.

Tesla leads the pack with a used-to-new loyalty rate of 58.7%, although this represents a 6-point drop from 2024, when it stood at 64.8%. This decline may provide improved conquest opportunities for used Tesla owners that didn’t exist previously.

Toyota follows as the clear #2, with a loyalty rate of 44.4%, up nearly 5 points from a year ago. Chevrolet (37.2%), Ford (37%) and Honda (36.6%) round out the top five brands.

These brands have been more successful in converting used owners into new vehicle customers. In the luxury segment, Mercedes-Benz leads the non-Tesla luxury class with a loyalty rate of 26.6%, below the industry average and placing it 11th overall.