Podcast Summary: Your Money Minute

Episode: Why Used Car Prices Are Soaring 10/17/25
Host: Jessica Ettinger (CNBC)
Date: October 17, 2025

Overview

This quick CNBC segment, hosted by Jessica Ettinger, explores why used car prices in the U.S. continue to soar. With contributions from CNBC automotive reporter Phil LaBeau and Mark Fields, former CEO of Ford, the episode explains the underlying causes—particularly the ripple effects of high new car prices, lingering impacts from the COVID-19 pandemic, and ongoing supply limitations. The key message: Don't expect used car prices to drop soon.

Key Discussion Points & Insights

1. Used Car Price Surge Driven by Factors Beyond Consumer Demand

• Phil LaBeau highlights that the surge isn’t just about consumers overbidding; it’s a reflection of industry dynamics (00:06):
  • “This is less a reflection of the consumer and more a reflection of the supply and the pricing of new vehicles.”
• Tariffs and high new car prices are pushing more buyers into the used market (00:12):
  • “They are impacted by tariffs. That's why you see the new vehicle prices close to a record high. That by extension... going to drive more people into the used market...”

2. Supply Constraints from the COVID-19 Era

• Supply issues date back to early pandemic years.
• Mark Fields explains how production slowdowns during COVID are now impacting the secondhand market for leases (00:46):
  • “During COVID there weren't a lot of vehicles manufactured and sold and so that... when you think two, three years later, particularly for leases, you have less supply coming to the market.”

3. Expert Forecast: Prices Will Stay High

• No relief in the near term; Mark Fields predicts the elevated used car prices will persist (00:39):
  • “Used car prices are probably going to hold up over the next six to 12 months.”

4. Advice for Car Buyers

• Jessica Ettinger recaps: Shoppers face higher prices because of both reduced supply and intensified competition from buyers avoiding the new car market (00:58):
  • “So used car prices are higher for two reasons. There's less supply and more competition from people who don't want to spend so much more on a new car.”

Notable Quotes & Memorable Moments

• Phil LaBeau, on the root cause of high used prices (00:06):
  • “This is less a reflection of the consumer and more a reflection of the supply and the pricing of new vehicles.”
• Mark Fields, outlook for the next year (00:39):
  • “Used car prices are probably going to hold up over the next six to 12 months.”
• Mark Fields, on COVID-19’s lasting impact (00:48):
  • “During COVID there weren't a lot of vehicles manufactured and sold and so... particularly for leases, you have less supply coming to the market.”
• Jessica Ettinger, summary for buyers (00:58):
  • “Used car prices are higher for two reasons. There's less supply and more competition from people who don't want to spend so much more on a new car.”

Timeline of Important Segments

• 00:06 – Phil LaBeau explains the effect of new car pricing and tariffs on used car prices.
• 00:39 – Mark Fields projects used car prices will remain high for 6–12 months.
• 00:48 – Mark Fields describes how COVID-19 affected both new and used car supply.
• 00:58 – Jessica Ettinger summarizes the main reasons for the continued high prices.

Takeaway

Used car prices remain elevated due to persistent supply shortages and increased demand from buyers deterred by record new car prices, with no quick relief in sight. If you’re in the market for a vehicle, expect continued competition and higher costs in the coming months.