Inventory is up 30%, according to a study
of ConsumerAffairs
During the pandemic, prices of used cars hit record highs. In recent months, however, used car sales have fallen, and so have prices.
According to the Consumer Price Index, used car prices have fallen for the last three months and are down 10.4% over the last 12 months. Now, for the first time in years, there is plenty of used vehicle inventory priced at $20,000 or less.
A study by automotive website iSeeCars.com shows sub-$20,000 vehicle inventory is up by 30% since last year, giving the budget-conscious buyer a lot more choices. These arent old clunkers, either.
For the study, iSeeCars analyzed over 17.9 million 1- to 5-year-old used cars sold between January and August of 2019, 2023, and 2024. Both pricing and mileage were analyzed to track changes over these five years. For the study, the oldest vehicles would be 2019 models.
After years of increasing used car prices weve finally seen prices drop in the past year, said iSeeCars Executive Analyst Karl Brauer. While $20,000 would buy approximately half of the 1- to 5-year-old used car market in 2019, that number was down to just 12.7 percent in 2023. Now its on the rise again, with 16.5 percent of used cars priced below $20,000 in 2024.
In another favorable development for buyers, used cars selling for $$20,000 or less have fewer miles than a comparable vehicle had last year. This means buyers are not only paying less, they are also getting used models with a lot more future miles.
Fewer miles
Even better, some of the biggest mileage drops are in the lowest-priced segments, with used cars under $10,000 having 9.6% fewer miles, and used cars priced between $15,000 and $20,000 having 9.2% fewer miles.
Brauer said the used market has completely flipped from the pandemic years and offers better opportunities.
Theyre getting a less used car at a better price, he said.
Among popular makes and models now selling in the $20,000 price range are the Toyota Corolla, the Hyundai Elantra and the Chevrolet Malibu.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-09-25 01:10:51
