Anyone who has shopped for a used car in the last five years will tell you that it can be a harrowing process and that the prices paid are often much higher than expected. Despite the naysaying, that situation has been improving in the last few months, and a new study from iSeeCars shows that buyers are increasingly gravitating toward the used market to save money on annoyingly expensive new models.
iSeeCars pointed out that older used vehicles make up a much larger number of car purchases than they did 10 years ago. Sales of used cars 10 years or older have increased 30% since 2014, and the organization noted that hatchbacks, sedans, and wagons are at the top of the growth charts.
At the same time, recent model-year used vehicles are more expensive than they were a few years ago, leading buyers to older models to compensate. The supply of older vehicles was pretty flat between 2014 and 2017 but saw a significant dip in 2020 as new vehicle prices skyrocketed. The last four years have seen used models grow from 15.1% in 2020 to 22.7% in 2024, and prices have increased by more than $3,000 on average.
Older models’ growing popularity isn’t uniform, with sedanss, hatchbacks, and wagons making up the leading edge of the growth trend. iSeeCars said that the vehicles see less demanding use during their lives, making them excellent used choices, but the popularity of those body styles hasn’t led to a dramatic increase in prices, with many available for $10,000 or less.
