Over the past few years, car buying has become expensive to say the least. Today’s new vehicle goes for about $48,000 according to Kelley Blue Book. A used one? $28,706 according to CarGurus. Not to mention American roadways are now filled with more pickup trucks, SUVs, and crossovers so it’s harder to find pre-owned compact, economical models and sedans. Electric vehicle prices are in a class of their own; mostly luxury models with an average price of $61,488 according to KBB.
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From 2020 to 2022, new car production was restricted when not halted
The pandemic has changed the automotive market; from 2020 to 2022 new car production was limited. At times, completely halted. Supply chain issues, inflation, chip shortages, and the like. This resulted in low inventory, driving the prices up for new vehicles. Many car buyers were forced to buy used vehicles, which in turn affected the price for secondhand cars. Suddenly demand was high, and supply was low.
The average 4-year-old car in 2019 cost $21,376, these days the same model goes for $30,648 — a 43.4% change in price
Yesterday’s new vehicles are today’s used cars
These 2020 to 2022 models are now almost four years old. In other words, the inventory represents the used car market of 2023. The recent United Auto Workers strike of about 45,000 workers so far will also affect the used car buying market. General Motors, Ford, and Stellantis workers are picketing instead of manufacturing vehicles. Production is again affected which will in turn affect supply and demand, hiking up prices. Jeeps, Cadillac Escalades, Chevrolet Tahoes, and Super Duty trucks will probably be scarce.
The budget needed for a 3-year-old car in 2019 can’t buy a 6-year-old car today
Automotive marketplace, iSeeCars analyzed over 21 million used cars sold between January and August 2019 and 2023 to find out the average ages of used vehicles, their market share, and more. If you had a budget of $23,000 in 2019 you could’ve bought a 3-year-old (used) car. In 2023, that budget can’t even get you a 6-year-old model. Another finding in the study is about the average age of used vehicles: in 2019 4.8 years old in 2023 6.1 years old. Today there is 28% less secondhand vehicles on the market compared to just a short four years ago (2019). But when looking at one to three years old models, the inventory is down anywhere from 20% to 45%.
A 3-year-old Toyota Corolla cost on average $14,373 in 2019; today you must buy an 8-year-old Corolla if you want to spend that same amount
If you want the title certificate to an almost-new vehicle, in other words a 1-year-old car, know that the category represents only 7.3% of the market this year. Four years ago, the market share was 13.5%. That’s a decrease of 45.8%! If you’re looking for a really old vehicle, say a 10-year model, 2023 has a market share of 4.4% compared to only 2% in 2019. That’s a 123.7% difference!
When looking at the sticker price, that 1-year-old car in 2023 has the highest price hike from 2019. 67% more expensive today. A two-year-old model according to iSeeCars has a price difference of 57%; from $23,886 (in 2019) to $37,675 (in 2023). A five-year-old car used to be $18,258 and is now in 2023 $27,506.
What model you could get then versus today
Essentially, the iSeeCars study reports that 48 different models must be twice as old today to cost roughly what they did in 2019. For instance, a 3-year-old Chevrolet Spark cost on average $9,878 in 2019. Today, you must buy a 9-year-old Spark if you want to spend that same amount. A 3-year-old Kia Forte in 2019 cost on average $12,031, today you can get an 8-year-old version of this model. Honda Civic that’s been used for three years sold at about $16,351 four years ago, in 2023 you’d have to buy an 8-year-old version to pay the same sticker price. To pay the same 2019 amount for a used Nissan Sentra today, you need to buy a 7 year old model.
A 3-year-old Ford Focus cost on average $12,789 in 2019; in 2023 you must buy an 7-year-old model to stay within the same budget
It’s safe to say the long-standing used car prices have overstayed their welcome. Just like that irritating houseguest who keeps extending their visit. Go away already!
