The average price of a new car in the US is no longer that low at around $50,000, which is attracting buyers to the used car market. However, this fact significantly increases the price of used cars. And this trend is growing fast. Old used cars are also becoming extremely expensive.
According to a recent study by iSeeCars, the average price of a 10-year-old car is now $12,194. In 2014, it was $7,583, a 60 percent difference over ten years. This increase is in line with the higher market share of older used cars, which currently stands at 22.7 percent. More people than ever are buying used cars and are willing to pay significantly more for them.
The changes started with the start of the COVID-19 pandemic. The market share at the beginning of 2020 was 15.1 percent, and the average sales price was $9,135. By 2022, the share jumps to 19.2 percent and the price reaches $12,549.
„The trend in vehicle prices is an inevitable tidal wave,” said Carl Brauer, executive analyst at iSeeCars. – “When new and used car prices skyrocket, as they have for the past four years, the wave will not stop, and it is only natural that older cars, even cars built more than a decade ago, will be swept away.“
There's no denying the popularity of SUVs, but the study, which analyzed 169 million used cars sold over the past 10 years, found that sedans, hatchbacks and station wagons are also extremely popular and rising in price respectively. Leading the way is the Hyundai Sonata, which reported a staggering 484.3% increase in market share among vehicles 10 years and older. The Subaru Legacy, Impreza and Impreza wagon also make the top five, along with the Mercedes-Benz C-Class. Contrary to what some automakers claim, many buyers still want cars that aren't giant SUVs.
„While older sedans, station wagons and hatchbacks are not as popular with new car buyers, they are gaining share in the used car market, says Brower. – “Their lower price, easier handling and better fuel efficiency make them a great alternative to larger SUVs that cost more and require higher fuel, maintenance and insurance costs.“