Used car prices in the U.S. finally falling after years of increases

The average price for used cars between 1 and 5 years old has dropped 4.7% compared to last year. It now sits at $32,672. That's still 40.1% higher than the 2019 average of $23,314, but it's a step in the right direction for buyers.

A new iSeeCars study reveals that cars on the US market have fewer miles on them as well. The average mileage has decreased by 2.8% to 39,109 miles. This means buyers are getting newer, less-used vehicles for their money.

More cars under $20,000 are showing up on lots. You can find 2023 Hyundai Elantras, 2024 Chevrolet Malibus, and 2024 Toyota Corollas in this price range. Some popular models from 2023 to 2024 have seen big price drops. The Jeep Grand Cherokee is down 9.2%, the Ford Explorer 7.4%, and the Subaru Outback 6.7%.

Let's look at the Honda Accord as an example of the mileage trend. In 2023, you'd find one under $20,000 with about 93,858 miles on it. Now, that same price will get you one with only 79,513 miles - a 15.3% decrease. It's worth noting that in 2019, the average mileage was even lower at 41,836 miles.

While prices and mileage are coming down, they're still far above what we saw before the pandemic. The car market has been through big changes in the last few years. It'll take time for things to settle, but for now, buyers can enjoy some relief with lower prices and fresher vehicles.

Source: iSeeCars