With gradually falling prices, used cars have become an even better bargain compared to new cars in this crazy vehicle market, according to a new automotive report.
Used vehicles “have become 5.8% more affordable as prices fell and median household income rose,” says a recent report from vehicle research site iSeeCars, which shows the cars with the biggest price drops.
These Used Vehicles Have Had the Biggest Price Decreases
Here are some key findings from the latest iSeeCars.com analysis:
- The Tesla Model 3 has fallen 28.9% which constitutes the biggest price drop year-over-year among used cars.
- The BMW i3 dropped 18.1%, which is the second-largest year-over-year price decrease on the list.
- Prices for electric vehicles continue to drop as used EVs are down 20% and new EVs have dropped 10%.
iSeeCars analyzed three-year-old cars over the past year against its Car Affordability Index, which compares median household income to an idealized income for financing a car. The site provides both the percentage price difference from their affordability threshold and a percentage price difference from October 2022 until September 2023. We will focus on the latter to look at the used cars with the biggest price drop.
Let’s take a look:
| Model | % Price Difference Below the Affordability Threshold | % Price Drop from Oct. 2022 | Average 3-Year-Old Used Car Price 2023 |
|---|---|---|---|
| Tesla Model 3 | -1.5% | -28.9% | $32,861 |
| BMW i3 | -16.9% | -18.1% | $27,748 |
| Chevrolet Blazer | -12.9% | -16.6% | $29,062 |
| BMW 2 Series | -6.8% | -15.8% | $31,116 |
| Volvo S60 | -11.6% | -14.4% | $29,507 |
| Audi A5 Sportback | -3.4% | -12.3% | $32,230 |
| Volvo XC40 | -6.2% | -11.7% | $31,302 |
| Genesis G70 | -8.0% | -10.9% | $30,689 |
| Nissan Armada | -3.3% | -10.8% | $32,268 |
| Lexus UX 250h | -1.3% | -9.9% | $32,931 |
See the complete study at iSeeCars.com.
How To Buy a Used Car Right Now
Money expert Clark Howard expects car prices to continue to drop throughout the year and into 2024 as car manufacturers fully rebound from inventory problems.
While used car prices continue to improve, the U.S. vehicle market is still overpriced. Clark has said that if you can delay buying a vehicle right now — perhaps allowing enough time for car prices to drop — and fix the one you have, that’s the best option. But if you really need to buy a used car, there’s some homework he wants you to do first:
1. Do Your Research
First, Clark says you should always check reliability ratings. While the research iSeeCars has done is helpful, you should do a deep dive by checking the Consumer Reports auto reliability survey, which is published annually.
The magazine features detailed reliability ratings for past model years on all the popular car brands. Visit ConsumerReports.org to get digital access to the used car ratings starting at $10 a month. Or check your local library to see if it has a copy available for free.
2. Check the VIN
Second, you’ll want to check the vehicle’s identification number, or VIN, to learn about its history, including if it’s a flood car or has been in a horrible accident.
And don’t pay for a VIN check. Read our guide on how to get a free VIN check.
3. Get a Mechanic’s Inspection
It may take patience, determination and good fortune to find a trustworthy mechanic, but it’s worth the effort.
Have the used vehicle thoroughly inspected by an independent mechanic, before you hand over any money to purchase a used car. Clark wants you to choose a mechanic with an ASE (Automotive Service Excellence) certification, which means they have completed rigorous training and education on the fundamentals of auto repair and maintenance.
Clark’s #1 tip on choosing a mechanic is this:
“I want you to have a relationship with a mechanic for routine maintenance — not when something goes wrong and you’re looking for a shotgun marriage with some shop. I want you to find that shop, that mechanic, you can trust ahead of time.”
Final Thoughts
After an extended period when used car prices cost as much or even more than new vehicles, the market is slowly starting to return to normal. But many used cars are still overpriced, and it is as important as ever that you do your homework so that you don’t overpay — or worse, end up with a lemon.
Looking for a used car to fit your budget? Read our seven-step used car buying guide.
