Car prices are skyrocketing, with the average new car price nearing $50,000, pushing buyers towards the used market. This shift has driven up the prices of used cars significantly, including older models.
A recent iSeeCars study reveals that the average price of a 10-year-old car is now $12,194, compared to $7,583 in 2014, marking a 60 percent increase. The market share for older used cars has also risen to 22.7 percent, indicating more people are purchasing older vehicles and paying a premium for them.
The trend began with the COVID-19 pandemic. In early 2020, the market share for older used cars was 15.1 percent, with an average selling price of $9,135. By 2022, the market share jumped to 19.2 percent, and the average price reached $12,549.
“The trend in vehicle prices represents an inescapable tidal wave,” said Karl Brauer, executive analyst at iSeeCars. “When new and lightly used car prices spike, the impact inevitably extends to older cars, even those over a decade old.”
Interestingly, while SUVs remain popular, the study—which analyzed 169 million used cars sold over the last decade—found that sedans, hatchbacks, and wagons are highly sought after. The Hyundai Sonata led with a 484.3 percent increase in market share among cars 10 years old or older. The Subaru Legacy, Impreza, and Impreza wagon, along with the Mercedes-Benz C-Class, also ranked highly.
"Older sedans, wagons, and hatchbacks are gaining market share in the used car market," noted Brauer. “Their lower cost, lighter use, and higher fuel efficiency make them excellent alternatives to larger trucks and SUVs, which are more expensive upfront and more costly to fuel and insure."
Source: iSeeCars