There’s no getting around it: The secondhand automobile industry is completely ridiculous. A few years of delayed new car production have put enormous pressure on used vehicle costs and supply. And the problems have gotten so bad that some purchasers are forced to look for considerably older automobiles than they would ordinarily.
According to a new iSeeCars survey, consumers spending $23,000 could purchase a three-year-old automobile in 2019, but that amount currently struggles to get a six-year-old vehicle. Karl Brauer, an analyst at iSeeCars, attributes some of this to lower manufacturing numbers during the pandemic.
Whatever the cause, the result is obvious: Late-model used cars are no longer inexpensive. One-year-old cars cost roughly $28,000 in 2019, but by 2023, that figure has risen to $46,403, a 67% increase. Simultaneously, older used models saw price rises of up to 53% in some circumstances. The average used model pricing has risen by 33%.
While buying an older used car isn’t the worst thing in the world, even the most unattractive secondhand models are pricey. The price of an eight-year-old Hyundai Accent has risen by over $200, however, some models have decreased.
The days of looking for a beater on Craigslist or Facebook Marketplace have passed, and the money that could have bought a good project now buys a heap of junk with no engine.