by Sharp Increase in Prices for Used Cars
Prices for used cars have increased significantly in recent years. The average cost of a three-year-old car today exceeds $32 thousand, whereas in 2019, almost half of such cars cost less than $20 thousand. Popular models like the Honda Civic or Toyota Corolla have become dozens of percent more expensive.
Research shows that affordable used car options are becoming scarce. If in 2019, 49.3% of three-year-old cars cost up to $20 thousand, now there are only 11.5% of such cars. The average price has increased by 40.9% since 2019, which creates serious problems for buyers.
Market Changes
This is partly due to the reduction in production of budget sedans. Manufacturers have focused on more profitable crossovers and SUVs. For example, the average price of a three-year-old sedan has increased by 48.7%, but they are still cheaper than SUVs.
In 2019, 97.6% of three-year-old Honda Civics cost less than $20 thousand, but now only 5.7% of such cars remain.
Specific models, such as the Nissan Sentra or Toyota Camry, have become $5–7 thousand more expensive over the past six years. Even previously affordable crossovers like the Toyota RAV4 are now rarely found in the price range up to $20 thousand.
The used car market continues to change, and the trend of rising prices remains relevant. This is especially felt by buyers looking for reliable transportation at an affordable price. The cost increase is reflected not only in sedans but also in SUVs and pickup trucks, which have also become significantly more expensive.
