Yahoo Autos Pandemic Hangover Forces Used Car Shoppers To Buy Much Older Cars
Highlights:
Today’s late-model used car shoppers have to buy cars more than twice as old as what the same money bought them in 2019
$23,000 Bought a 3-year-old used car in 2019, but today $23,000 won’t even buy a 6-year-old car
In 2019 $14,500 to $16,500 bought a 3-year-old Honda Civic or Toyota Corolla, but today those models would have to be 8 years old to land in the same price range
Limited production of new cars in 2020-2022 is reflected in the scarce availability of 1- to 3-year-old used cars
A combination of restricted used car supply and inflation has forced buyers into much older used cars over the past 4 years. Buyers with a $23,000 budget could purchase a 3-year-old car in 2019, but that same amount is not enough for an average 6-year-old used car today. The reduced production of new cars in 2020, 2021, and 2022 is now reflected in limited used car availability and dramatically higher prices.
iSeeCars.com analyzed over 21 million used cars sold in 2019 and 2023 and found that the average age of used cars sold increased from 4.8 years to 6.1 years, while the average price across all ages increased 33 percent, from $20,398 to $27,133.
“Plant shutdowns and limited new car production during the pandemic is still playing havoc with the used car market,” said iSeeCars’ Executive Analyst Karl Brauer. “With 28 percent fewer 1- to 3-year-old used cars today compared to 2019, today’s buyers have to shop 6-year-old – or older – cars to find a comparably priced vehicle.”
Limited new car production during pandemic means limited used cars today
Looking at used car market share reflects the lack of new car production due to supply chain issues between 2020 and 2022.
“The impact of restricted new car production during the pandemic has come home to roost in the used car market,” said Brauer. “With 1- to 3-year-old used car supply down between 20 and 45 percent, buyers that previously shopped for late model year used cars now have to spend much more or consider much older vehicles.”
Age of Cars and Change in Market Share: 2019 to 2023 – iSeeCars Study | |||
Age of Cars (Years) | % Share 2019 | % Share 2023 | % Change in Share, 2019-2023 |
1 | 13.5% | 7.3% | -45.8% |
2 | 14.4% | 11.6% | -19.5% |
3 | 21.1% | 15.5% | -26.7% |
4 | 12.6% | 11.7% | -7.0% |
5 | 7.6% | 8.5% | 11.7% |
6 | 6.5% | 7.8% | 19.2% |
7 | 5.0% | 6.8% | 36.1% |
8 | 4.0% | 6.3% | 58.1% |
9 | 2.9% | 5.2% | 80.2% |
10 | 2.0% | 4.4% | 123.7% |
11+ | 10.4% | 14.9% | 43.0% |
