Purchasing a new car is always an exciting experience, with the promise of new technologies, improved powertrains, increased safety, fresh designs, and more. While automakers sell millions of new cars each year in the US, the majority of Americans opt to buy used cars. However, buying used has become significantly more expensive in recent years.
A recent study by iSeeCars reveals that buyers of used cars today are spending 33% more than they did in 2019. Not only are the cars older, with an increase from an average age of 4.8 years to 6.1 years, but they are also more expensive. In 2019, $23,000 could buy a three-year-old used car. Today, that same amount would only purchase a six-year-old model. To complete the same transaction in today’s market, one would need $24,210.
| Model | Average 3YO Price In 2019 | Age of Car With Closest Average Price In 2023 | Average Price In 2023 |
| Chevrolet Spark | $9,878 | 9 | $9,692 |
| Nissan Versa | $10,095 | 8 | $10,148 |
| Fiat 500 | $11,766 | 8 | $11,320 |
| Hyundai Elantra | $12,222 | 8 | $11,925 |
| Volkswagen Golf | $14,876 | 8 | $14,758 |
| Toyota Corolla | $14,373 | 8 | $14,788 |
| Honda Civic | $16,351 | 8 | $15,460 |
| Ford Mustang | $23,584 | 8 | $23,755 |
| Chevrolet Corvette | $53,528 | 8 | $52,759 |
| Toyota Tacoma | $28,530 | 7 | $28,980 |
The scarcity of used cars built within the last three years is one of the reasons for the increased prices. The COVID-19 pandemic disrupted new car production in 2020, resulting in a series of events that impacted automakers, suppliers, and overall production capacity in recent years. The study discovered that the used car market has 28% fewer one- to three-year-old used cars compared to 2019, leading to an increase in market share for cars older than five years.
The reduced availability of recent used cars has driven up prices significantly. One-year-old used cars are now 67% more expensive on average, costing around $46,403 compared to $27,793 in 2019. Similarly, two- and three-year-old car prices have risen by 57.7% and 41% respectively. Prices have increased from $23,886 to $37,403 for two-year-old cars and from $23,048 to $32,493 for three-year-old cars.
Furthermore, prices of six-year-old cars have surged by 53.4% to an average of $24,210. Even cars that are a decade or older have seen price hikes. Ten-year-old cars are now 38.9% more expensive, with prices increasing from $10,728 to almost $15,000. On average, an 11-year-old car costs over $11,000.
The study also analyzed the price changes of specific models. For example, in 2019, a three-year-old Chevrolet Spark had an average price of $9,878. In 2023, a Chevy with a similar price of $9,692 would be nine years old. Similarly, a three-year-old Ford Mustang in 2019 priced at $23,584 has become an eight-year-old Mustang priced at $23,755 in 2023.
iSeeCars examined over 21 million car sales between January and August of 2019 and 2023 to conduct this study. For more detailed information and charts, please refer to the source link below.