Used Car Shoppers Now Have to Buy Cars Twice as Old Compared to 2019

The pandemic saw prices go haywire for both new and used cars alike. We've seen some cooling in the marketplace since then, but new research suggests that used car prices are still entirely jacked up. As a result, used car buyers are getting pushed into far older vehicles than before.

A new study from iSeeCars reveals just how far the used car market has shifted in recent years. The most striking finding from the report is that in 2019, a $23,000 budget would easily get you a three-year-old used car. Today, you'd need closer to $24,000 to afford the average six-year-old car on the market.

iSeeCars analyzed over 21 million used car sales from 2019 to 2023, finding that the average age of used cars has increased from 4.8 years to 6.1 years. Over that same period, the average price across used cars of all ages has leaped 33 percent, from $20,398 to $27,133. It bears noting that the study concerns itself with dollar values, with none of the figures quoted adjusted for inflation.

The simple fact is that prior to the pandemic, cars were depreciating far faster than today. After years of constrained supply caused by the chip shortage and other supply chain snarls, it's no surprise that prices have gone up. With production held back from 2020 to 2022, there is a scarcity of cars that are one to three years old, and thus, prices are higher. Tack on inflation as well, and you've got a perfect storm.