After a pandemic-fueled spike in prices, what it costs to buy a used vehicle has finally been trending downward — which is good news for your wallet.
Money expert Clark Howard expects car prices to continue to drop throughout the year and into 2024 as car manufacturers fully rebound from inventory problems.
Over the past six months, some used vehicles have seen price drops more drastic than others. A recent report from vehicle research site iSeeCars shows the cars with the biggest price drops.
What Used Vehicle Has Had the Biggest Price Decrease?
Here are some key findings from the latest iSeeCars.com analysis:
- The Tesla Model 3 is down 21.5% since September 2022, which constitutes the biggest price drop among used cars in the last six months.
- 10 models have dropped more than 16% below what they cost six months ago.
- Used car prices have fallen 4.7% from September and 8.7% from a year ago.
iSeeCars analyzed 1.8 million used car sales between February 2022 and February 2023 to identify which vehicles have gotten cheaper.
These Used Vehicles Had the Biggest Price Decreases
| Used Vehicle | Average Used Car Price | Price Difference From September 2022 (In Dollars) | Price Difference From September 2022 (in %) |
|---|---|---|---|
| Tesla Model 3 | $41,337 | -$11,302 | -21.5% |
| Nissan Kicks | $19,713 | -$3,050 | -13.4% |
| Nissan LEAF | $25,734 | -$3,502 | -12.0% |
| Toyota C-HR | $22,844 | -$3,072 | -11.9% |
| Jaguar E-PACE | $33,836 | -$4,437 | -11.6% |
| Toyota Prius Prime | $29,856 | -$3,875 | -11.5% |
| Chevrolet Malibu | $19,082 | -$2,463 | -11.4% |
| Toyota RAV4 | $27,612 | -$3,537 | -11.4% |
| Toyota Camry | $24,384 | -$3,050 | -11.1% |
| Hyundai Ioniq Hybrid | $20,528 | -$2,540 | -11.0% |
| National Average | $31,815 | $33,368 | -4.7% |
See the complete study at iSeeCars.com.
How To Buy a Used Car Right Now
While used car prices continue to improve, the U.S. vehicle market is still overpriced. Clark has said that if you can delay buying a vehicle right now — perhaps allowing enough time for car prices to drop — and fix the one you have, that’s the best option. But if you really need to buy a used car, there’s some homework he wants you to do first:
1. Do Your Research
First, Clark says you should always check reliability ratings. While the research iSeeCars has done is helpful, you should do a deep dive by checking the Consumer Reports auto reliability survey, which is published annually.
The magazine features detailed reliability ratings for past model years on all the popular car brands. Visit ConsumerReports.org to get digital access to the used car ratings starting at $10 a month. Or check your local library to see if it has a copy available for free.
2. Check the VIN
Second, you’ll want to check the vehicle’s identification number, or VIN, to learn about its history, including if it’s a flood car or has been in a horrible accident.
And don’t pay for a VIN check. Read our guide on how to get a free VIN check.
3. Get a Mechanic’s Inspection
It may take patience, determination and good fortune to find a trustworthy mechanic, but it’s worth the effort.
Have the used vehicle thoroughly inspected by an independent mechanic, before you hand over any money to purchase a used car. Clark wants you to choose a mechanic with an ASE (Automotive Service Excellence) certification, which means they have completed rigorous training and education on the fundamentals of auto repair and maintenance.
Clark’s #1 tip on choosing a mechanic is this:
“I want you to have a relationship with a mechanic for routine maintenance — not when something goes wrong and you’re looking for a shotgun marriage with some shop. I want you to find that shop, that mechanic, you can trust ahead of time.”
Final Thoughts
After an extended period when used car prices cost as much or even more than new vehicles, the market is slowly starting to return to normal. But many used cars are still overpriced, and it is as important as ever that you do your homework so that you don’t overpay — or worse, end up with a lemon.
Looking for a used car to fit your budget? Read our seven-step used car buying guide.
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