Anyone who has bought a used car in the last five years will tell you that buying a used car can be a daunting process, and the price you pay is often much higher than you expected. Despite the naysayers, the situation has been improving in recent months, with new research from iSeeCars finding that buyers are increasingly gravitating toward the used car market to save money on purchasing an overpriced new car.
iSeeCars noted that people are buying significantly more older used cars than they did 10 years ago: Sales of used cars that are more than 10 years old have increased 30% since 2014, with hatchbacks, sedans and wagons topping the growth charts, the organization noted.
At the same time, used cars of recent model years are becoming more expensive than they were a few years ago, and to compensate, buyers are turning to older models. The supply of older vehicles remained roughly flat between 2014 and 2017, but fell sharply in 2020 as new car prices soared. Over the past four years, used models have increased in price, from 15.1% in 2020 to 22.7% in 2024, with prices increasing by more than $3,000 on average.
The rise in popularity of older models has not been uniform, with sedans, hatchbacks and wagons leading the growing trend. iSeeCars notes that these vehicles tend to see less hardship during their lifespan, making them great used options, but the popularity of these body styles hasn’t translated into a dramatic increase in prices, with many available for under $10,000.
