The pandemic saw prices go haywire for both new and used cars alike. We’ve seen some cooling in the marketplace since then, but new research suggests that used car prices are still entirely jacked up. As a result, used car buyers are getting pushed into far older vehicles than before.
A new study from iSeeCars reveals just how far the used car market has shifted in recent years. The most striking finding from the report is that in 2019, a $23,000 budget would easily get you a three-year-old used car. Today, you’d need closer to $24,000 to afford the average six-year-old car on the market.
iSeeCars analyzed over 21 million used car sales from 2019 to 2023, finding that the average age of used cars has increased from 4.8 years to 6.1 years. Over that same period, the average price across used cars of all ages has leaped 33 percent, from $20,398 to $27,133. It bears noting that the study concerns itself with dollar values, with none of the figures quoted adjusted for inflation.
The simple fact is that prior to the pandemic, cars were depreciating far faster than today. After years of constrained supply caused by the chip shortage and other supply chain snarls, it’s no surprise that prices have gone up. With production held back from 2020 to 2022, there is a scarcity of cars that are one to three years old, and thus, prices are higher. Tack on inflation as well, and you’ve got a perfect storm.
It’s left many used car buyers now looking at much older vehicles than previously. For many popular vehicles, the same dollar figure that would secure you a three-year-old vehicle will now only get you something that’s been on the road for seven to nine years instead. That’s a less attractive proposition in many ways, particularly given the dated technology and additional mileage on older vehicles.
| Model | Average Price of 3-Year-Old Car in 2019 | Age of Car With Closest Average Price Today | Average Price for That Age Car Today |
| Chevrolet Spark | $9,878 | 9 years old | $9,692 |
| Nissan Versa | $10,095 | 8 years old | $10,148 |
| Fiat 500 | $11,766 | 8 years old | $11,320 |
| Volkswagen Golf | $14,876 | 8 years old | $14,758 |
| Toyota Corolla | $14,373 | 8 years old | $14,788 |
| Honda Civic | $16,351 | 8 years old | $15,460 |
| Toyota Camry | $16,570 | 8 years old | $16,194 |
| Ford Mustang | $23,584 | 8 years old | $23,755 |
| Honda CR-V | $20,411 | 7 years old | $20,142 |
| Toyota RAV4 | $20,782 | 7 years old | $20,400 |
The worst example found by iSeeCars was the Chevrolet Spark, where the same money that bought a three-year-old car in 2019 would now only afford a nine-year-old model. The study lays out a full 48 models that must be bought twice as old to meet the same prices as 2019, including popular nameplates like the Toyota Camry, Honda Civic, and the Ford Mustang.
“The 2019 budget that purchased 3-year-old versions of these cars now buys a 7- to 9-year-old version of that same model,” said Karl Brauer, Executive Analyst for iSeeCars. “Given that the average car is driven between 10,000 and 15,000 miles a year, these cars are not only more than twice as old, but have between 40,000 and 100,000-plus more miles—for the same money.”
For the average used car buyer, the message is simple: While prices are easing, you’re currently getting a lot less for your dollar, and that probably won’t change for a few good years. More’s the pity.
Got a tip? Let the author know: lewin@thedrive.com