Over the past few years, consumers shopping for a used car frequently encountered rising prices when visiting dealerships. Although the average price of a used car remains significantly higher than pre-pandemic levels, recent data indicates that costs are beginning to decline. A new iSeeCars study highlights that the average price of a one- to five-year-old used car has dropped by 4.7 percent from 2023 to $32,672, which is still 40.1 percent higher than the 2019 average of $23,314. However, buyers are now purchasing vehicles with fewer miles on average, which has decreased by 2.8 percent from last year to 39,109. Essentially, consumers are now getting more for less.
The decline in prices is also reflected in the availability of used cars priced under $20,000. In 2023, only the Hyundai Elantra fell into this category. Now, the Chevrolet Malibu and the Toyota Corolla have joined, all three averaging under $20,000, which is beneficial for consumers. Prices have also decreased for several popular models from 2023-2024, such as the Jeep Grand Cherokee (-9.2 percent), Ford Explorer (-7.4 percent), and Subaru Outback (-6.7 percent), along with their mileage. Honda Accords under $20,000 saw their average mileage drop by 15.3 percent, from 93,858 to 79,513, but this remains higher compared to 2019 when the average Accord under $20,000 had 41,836 miles.
While prices and mileage are starting to decrease, they still remain well above pre-pandemic levels, and it could take several more years before the market approaches 2019 levels. It may never fully return to those levels, but at least the trend is moving in the right direction.
