Used car price drops slowing down, hovering around $30K

Declines in used vehicle prices have slowed to a crawl reflecting a new period of stability in the preowned car market.

Driving the news: The recovery of new vehicle supply led used car prices to fall rapidly in the years following the COVID-19 pandemic.

• However, the speed at which prices are dropping is much slower than it used to be. According to data from iSeeCars, the average price of a one- to five-year-old vehicle is $29,934, just 1.4% lower than last year.

• Although used electric vehicle prices are falling at a much faster rate than other car types, their declines are also stalling. Preowned EVs were down 18% year-over-year in Nov., much better than the 30% decline the market saw in the first half of 2024.

Zooming in: While overall used car prices are down 1.4%, declines have hit brands in drastically different ways.

• At the high end of the spectrum, Tesla and Stellantis brands have seen the biggest drops in price. One- to five-year-old Tesla models are down the most, falling 21.2% from last Nov., followed by Maserati and Alfa Romeo at 12.3% and 9.3% respectively.

• Meanwhile, some used vehicles are actually more expensive than they were last year. Acura cars in the one- to five-year-old range have seen the biggest increase in price at 2.8%, followed by Chevrolet at 2.4% and Toyota at 2.3%.

Looking ahead: Even though the average price paid for a one- to five-year-old used vehicle sits at nearly $30,000, many buyers are still finding cars for much cheaper. Shoppers willing to look at older cars are especially likely to find a good deal for today’s market. Timing a car purchase to coincide with key holidays and months with low demand can help boost one’s chances of finding a cheap listing even further.

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