For the last few years, shopping for a used car has been a volatile prospect. Shoppers have largely learned to expect increasing price tags when visiting a used car dealer. The average price for a used car is still higher than it was before 2020, but prices seem to be finally coming down. According to iSeeCars, the average price is down almost 5% from 2023 for used cars between one and five years old.
Buyers Pursuing Used Cars with Fewer Miles
In recent years, buyers have been looking at cars with fewer miles, so the average used car is now selling for less and with fewer miles. Depending on the model, some average prices are down pretty drastically. For example, the Tesla Model 3 had an average price of $48,997 in 2019 and $37,548 in 2023. In 2024, it’s now down to $29,045. Unfortunately, other vehicles have steadily increased in price. For example, the Ram 1500 had an average used price in 2019 of $27,318, and it skyrocketed to $42,716 in 2023. In 2024, it’s still high but down to $39,206.
Availability of Used Vehicles Under $20,000
Another shift in affordability for used cars is the amount of vehicles under $20,000. Back in 2019, there were plenty of options, with the Chevrolet Equinox, Toyota Corolla, and Honda Accord standing out as used vehicles that sold for an average price under $20,000. In 2023, only the Hyundai Elantra had an average price under $20,000. In 2024, there are two other models in the Toyota Corolla and Chevrolet Malibu. The Corolla’s average used price is $19,793, which is still up from its $14,236 price in 2019.
Prices Down For Other Popular Models
Several other popular models have seen price drops in 2024 compared to 2023. For example, the Jeep Grand Cherokee is down to an average used price of $39,206 vs. $42,716 in 2023. However, this is still well above its price in 2019 of $27,394. Similarly, the Ford Explorer’s average price in 2019 was $26,412, and it’s down to $32,105 in 2024 from $34,667 in 2023. The Subaru Outback is another popular model that’s up about $4,000 from its 2019 price, but down $2,000 from its 2023 price.
Affordable Used Cars By Metro
Where you visit a car dealer for a used car might matter. Some metro areas are more expensive than others. For example, the recovery in used vehicles under $20,000 saw a 100.5% increase in Seattle, but only a 12.5% increase in Salt Lake City. Other metro areas with large increases include New York, Philadelphia, Detroit, Boston, Portland, and Los Angeles. These areas saw increases around the 40% range and higher.
What’s Next For Used Car Prices?
Ultimately, now is probably a good time to buy a used car. Especially if you live in one of the metros with an increased share of affordable used cars. Things could get hairy in later months, with the port strike set to go back into effect around January 15, 2025. This could further affect the supply chain and cause used car prices to rise again.
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