New Cars Gain Ground Over Used Vehicles

The Mexican market for used vehicles is losing ground to new cars as greater availability, aggressive promotions, and more attractive financing conditions make new units increasingly competitive.

Financing for used vehicles fell 2.4% year over year during the first half of 2026, accounting for just 13.7% of financed units, compared with 86.3% for new vehicles, according to data from the Mexican Association of Automotive Distributors (AMDA).

Used-car prices have stabilized after rising sharply between 2020 and 2022, when shortages of new vehicles pushed some models to prices more than 25% above their original value. However, stabilization has not translated into lower prices, limiting the segment’s ability to regain competitiveness.

The recovery in new-vehicle supply has been a key factor. Since 2024, improved availability has reduced pressure on used-car prices, while the arrival of more than 25 Chinese brands and models has increased competition and encouraged automakers to offer more aggressive promotions.

At the same time, inflation in vehicle prices has slowed significantly. According to Inegi’s National Consumer Price Index, annual inflation for automobiles fell from 4.02% in 2023 to 0.42% in 2024, remaining below overall inflation. In 2026, the category has even posted negative monthly variations in some periods.

Ken Charles, digital director at financial company MStar, said the combination of greater availability of new vehicles, promotional offers, more attractive financing rates, a narrower price gap between new and used cars, and the relatively higher financing cost of used vehicles has weakened demand for pre-owned units.

The used-car financing segment could recover some volume in the coming months, but its performance will depend largely on credit availability and financing conditions rather than vehicle prices. The key factor will be making financing a used vehicle more attractive compared with purchasing a new one.