As 2023 dawned it seemed the used-vehicle market was finally settling back down to some degree of normalcy after a pandemic’s worth of events fell into place like the components in a Rube Goldberg invention to drive up prices precipitously. Used-car prices that climbed by a whopping 45% from June 2020 to June 2021 fell by 8.8% over the 12-month period ending this past December, which seemed like good news for shoppers.
Unfortunately, experts caution that the roller coaster ride is expected to continue with regard to pre-owned vehicle prices. The just-released Manheim Used Vehicle Index suggests that prices of pre-owned models should again be trending upward in the months ahead. That’s because wholesale prices have jumped by 8.6% in the first quarter of 2023. As a result, Cox Automotive has revised its 2023 forecast for the used-car market as showing a 1.6% average price increase by the end of the year, instead of its original prediction of a 4.0% decrease.
If you’re thinking of jumping back into the used car market, now seems likely to be the best time to do so, before prices begin to spike once again. On the other hand, if you’re looking to sell or trade in an existing vehicle sitting on the sidelines until higher used-vehicle values kick in can work in your favor.
Beware, however, that the most in-demand cars, trucks, and SUVs can still command more money as pre-owned models than their current sticker prices as brand new models.
That’s according to the car search engine iSeeCars.com, which compiled a list “lightly used” one-year-old cars, trucks, and SUVs that sell for more than their brand-new equivalents’ MSRPs, based on asking prices of 8.9 million new and used-vehicle listings sold from February to March, 2023. While the typical used vehicle costs an average of $3,701 less than a brand-new equivalent, year-old Ford Maverick compact pickup trucks are going for an average 12.3% more than factory-fresh units, which amounts to a $4,038 difference.
Needless top say, the situation can be attributed to the law of supply and demand. Shoppers looking for the most-popular models like the Maverick are still finding bare cupboards at new-vehicle dealerships. That, in turn, sends them over to the used vehicle market, where its own supply issues have driven prices of the highest-demand models to record highs. Not surprisingly, given high gas prices, many are higher-mileage hybrid-powered models, with five out of the top 10 coming from Toyota.
The “Lightly Used” Cars That Are More Expensive Than New Versions
- Ford Maverick: +12.3% (+$4,038)
- Toyota Corolla Hybrid: +7.9% (+$2,038)
- Mercedes-Benz G-Class: +4.6% (+8,633)
- Toyota Sienna: +3.7% (+$1,806)
- Toyota RAV4 Prime: +3.5% (+$1,726)
- Toyota Corolla Cross: +2.9% (+$853)
- Toyota RAV4 Hybrid: +2.4% (+$953)
- Kia Carnival: +2.2% (+$916)
- Ford Bronco: +1.7% (+$901)
- Honda Civic Hatchback: +1.0% (+$297)
- Honda Accord Hybrid: +0.4% (+$252)
- Chevrolet Corvette: +0.4% (+$324)
- Kia Rio: +0.1% (+27)
- Honda Accord: +0.1% (+$16)
At that, astute shoppers can still find some bona fide bargains among gently used cars, particularly costly luxury models that are in far less demand and typically take a steep hit in value in the first year removed from a dealer’s lot. Among the year-old vehicles iSeeCars.com found selling for the biggest price drops new-to-used, the Audi e-tron full-electric vehicle tops the list, going for an average $22,757 less than a 2023 model, which represents a whopping 27.8% decrease.
The Used Cars That Cost The Least Compared To Their Brand-New Equivalents
- Audi e-tron; -27.8% (-$22,757)
- Alfa Romeo Stelvio: -26.9% (-$14,698)
- Mercedes-Benz C-Class: -24.6% (-$13,189)
- Audi A4: -24.3% (-$11,963)
- Nissan Titan: -23.9% (-13,809)
- Chevrolet Silverado 1500 Limited: -23.1% (-$13,809)
- Infiniti QX80: -23.0% (-$19,104)
- Nissan Murano -22.8% (-$10,199)
- Infiniti Q50: -22.5% (-$11,188)
- Porsche Macan: -22,4% (-$16,567)
- Mercedes-Benz S-Class: -22.2% (-$29,878)
- BMW 7 Series: -22.1%: (-$22,190)
- Genesis G70: -22.0% (-$10,878)
- BMW 2 Series: -22.0% (-$9,956)
- Infiniti QX50: -21.4% (-$10,492)
- Ford Mustang Mach-E: -21.1% (-$13,430)
- BMW 5 Series: -20.4% (-$13,699)
- Volkswagen ID.4: -20.4% (-$10,048)
- Jeep Compass: -20.4% (-$7,316)
- Nissan Rogue Sport: -20.4% (-$6,494)
You can read the full report here.
Read the full article here
