A combination of restricted used car supply and inflation has forced buyers into much older used cars over the past 4 years. Buyers with a $23,000 budget could purchase a 3-year-old car in 2019, but that same amount is not enough for an average 6-year-old used car today. The reduced production of new cars in 2020, 2021, and 2022 is now reflected in limited used car availability and dramatically higher prices.
iSeeCars.com analyzed over 21 million used cars sold in 2019 and 2023 and found that the average age of used cars sold increased from 4.8 years to 6.1 years, while the average price across all ages increased 33 percent, from $20,398 to $27,133.
“Plant shutdowns and limited new car production during the pandemic is still playing havoc with the used car market,” said iSeeCars’ Executive Analyst Karl Brauer. “With 28 percent fewer 1- to 3-year-old used cars today compared to 2019, today’s buyers have to shop 6-year-old – or older – cars to find a comparably priced vehicle.”
Used car budget and age comparison: 2019 vs 2023 - iSeeCars study
| 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 lack of recent used cars has driven up prices. One-year-old used cars are 67 percent more expensive today than in 2019, costing on average $46,403. That’s up from $27,793. Two- and three-year-old car prices are up 57.7 and 41 percent, respectively. Prices jumped from $23,886 and $23,048 to $37,403 and $32,493.
Six-year-old car prices jumped 53.4 percent to $24,210. Cars a decade old and older also increased. Ten-year-old car prices are now 38.9 percent higher, going from $10,728 to almost $15,000. An 11-year-old car today costs over $11,000 on average.
The study also looked at how the price of specific models has changed. In 2019, a three-year-old Chevrolet Spark cost, on average, $9,878. In 2023, the Chevy for nearly the same price of $9,692 would be nine years old. A three-year-old Ford Mustang in 2019 for $23,584 is now an eight-year-old Mustang for $23,755 in 2023.
Source: iSeeCars