USED CAR PRICES ARE FINALLY ON A DECLINE, THOUGH STILL EXPENSIVE

It’s no secret that if you’re in the market to buy a new car, be it used or brand-new, it’s not a fun experience. Studies have shown that monthly payments are pushing toward the thousands during a time when pretty much everything else is also seeing bumps in pricing, making things even more challenging for Americans. However, some may find comfort in the fact that used car prices are on the decline. This could mean those purchasing a used car won’t have to pay a similar monthly fee to those buying a new one in the coming months.

A recent report from iSeeCars has seen a relative drop in used car prices over the past few months. When comparing that with the average household income, the market is on its way to becoming more favorable to finding an affordable vehicle. The average 3-year-old car now has an average price of $33,373 as of September, which still isn’t how things used to be, but it’s progress. The study also laid out 23 used car models up to 3 years old, below this new average.

1. BMW i3 – 16.9% Below Average, -18.1% Since Oct. 2022, Average Price: $27,758
2. Chevrolet Blazer – 12.9% Below Average, -16.6% Since Oct. 2022, Average Price: $29,062
3. Volvo S60 – 11.6% Below Average, -14.4% Since Oct. 2022 – Average Price: $29,507
4. Alfa Romeo Stelvio – 8.8% Below Average – -9% Since Oct. 2022 – Average Price: $30,431
5. Genesis G70 – 8% Below Average, -10.9% Since Oct. 2022 – Average Price: $30,431
6. BMW 2 Series – 6.8% Below Average, -15.8% Since Oct. 2022 – Average Price: $31,116
7. Volvo XC40 – 6.2% Below Average, -11.7% Since Oct. 2022 – Average Price: $31,302
8. Cadillac XT4 – 6% Below Average, -9.2% Since Oct. 2022 – Average Price: $31,373
9. Buick Enclave – 4.2% Below Average, -6.4% Since Oct. 2022 – Average Price: $31,986
10. Lexus IS 300 – 4.1% Below Average, -4.7% Since Oct. 2022 – Average Price: $31,993
11. Honda Pilow – 3.4% Below Average, -3.6% Since Oct. 2022 – Average Price: $32,230
12. Audi A5 Sportback – 3.4% Below Average – Average Price: $32,230
13. Nissan Armada – 3.3% Below Average, -10.8% Since Oct. 2022 – Average Price: $32,268
14. Jeep Grand Cherokee – 2.5% Below Average, -5.6% Since Oct. 2022 – Average Price: $32,547
15. Audi Q5 – 2.2% Below Average, -8.5% Since Oct. 2022 – Average Price: $32,646
16. Toyota Avalon – 1.9% Below Average, -3.1% Since Oct. 2022 – Average Price: $32,748
17. Kia Stinger – 1.7% Below Average, -8.8% Since Oct. 2022 – Average Price: $32,811
18. Tesla Model 3 – 1.5% Below Average, -28.9% Since Oct. 2022 – Average Price: $32,861
19. Lexus UX 250h – 1.3% Below Average, -9.9% Since Oct. 2022 – Average Price: $32,931
20. BMW 3 Series – 1% Below Average, -6% Since Oct. 2022 – Average Price: $33,036
21. Ford Ranger – 0.9% Below Average, -4% Since Oct. 2022 – Average Price: $33,080
22. Jaguar E-Pace – 0.2% Below Average, -3.5% Since Oct. 2022 – Average Price: $33,303
23. Lexus NX 300 – 0.2% Below Average, -3.9% Since Oct. 2022 – Average Price: $33,352

Based on the information on this chart, EVs had the most significant price drop as the BMW i3 and Tesla Model 3 experienced double-digit price drops. Unsurprisingly, brands with larger resale values, like Lexus, saw a far less substantial decrease in their price. In fact, according to their data, if you were to purchase a used EV, you should see a drop of $144/month in payments, which is quite substantial.