Finally, there’s some good news about car prices. The average cost of a used vehicle has fallen more than 10% over the past four months, according to a new study from iSeeCars.com.
“The inflation and high interest rates of the past several months are clearly impacting consumers and have migrated to the car market where prices are consistently falling,” iSeeCars.com executive analyst Karl Brauer said in a statement. “We’re still a long way from ‘normal,’ but there are clear signs the elevated prices of the past two-plus years are coming to an end.”
Largest price decreases
The Tesla Model 3 topped the list of cars with the greatest price decreases between September and December 2022. The average price of a used Model 3 was $43,817 — a 16.8% decrease compared with just four months earlier.
The Nissan Kicks (with a used price of $20,046 in December), Ford Mustang ($26,852), Hyundai Ioniq Hybrid ($20,542) and Toyota RAV4 ($28,383) rounded out the top five used vehicles with the largest price decreases.
Used car prices fell 2% in November and 3% in December compared with a year earlier, marking the first major drop since the pandemic began, Brauer said.
The vehicles that have seen the largest price drops over the past year were large SUVs, luxury SUVs and performance coupes, including the Jaguar E-Pace, GMC Acadia, Ford EcoSport and Audi SQ5.
Largest price increases
Some used cars, however, are defying the trend. A Cadillac Escalade (with an average price of $76,040 in December) tops the list of used vehicles with the greatest price increases from September to December 2022. The Escalade was up 14.9% compared to just four months earlier. The Porsche 911 ($198,076), Mercedes-Benz S-Class ($89,403), Maserati Levante ($61,240) and Mercedes-Benz GLS ($68,880) rounded out the top five used vehicles with the largest price increases.
Prices for used electric and hybrid vehicles also remained strong. A used Toyota Prius Prime cost $32,131 — or 22.5% more — in December compared with September. The Nissan Leaf was up 20.9% to $28,314, while the Chevrolet Bolt EV was up 20.8% to $27,339.
